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Real Estate | How To

How to Write a Real Estate Business Plan (+ Free Template)

Published June 30, 2023

Published Jun 30, 2023

REVIEWED BY: Gina Baker

WRITTEN BY: Jealie Dacanay

This article is part of a larger series on How to Become a Real Estate Agent .

• 1 Write Your Mission Statement
• 2 Conduct a SWOT Analysis
• 3 Set Specific & Measurable Goals
• 4 Plan Your Marketing Strategies & Tactics
• 5 Create a Lead Generation & Nurturing Strategy
• 6 Calculate Your Income Goal
• 7 Set Times to Revisit Your Business Plan
• 8 Why Agents Need a Real Estate Business Plan
• 9 Real Estate Business Plan Examples & Templates
• 10 Bottom Line
• 11 Frequently Asked Questions (FAQs)

A real estate business plan lays the groundwork and provides direction on income targets, marketing tactics, goal setting, lead generation, and an overview of your industry’s competition. It describes your company’s mission statement in detail and assesses your SWOT (strengths, weaknesses, opportunities, and threats) as an organization. Business plans should include measurable goals and financial projections that you can review periodically throughout the year to ensure you meet your goals.

Continue reading to see real estate business plan examples and discover how to write a real estate business plan. Start by making your own by downloading and using the free real estate business plan template we’ve provided below.

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Real Estate Business Plan Template

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💡Quick tip:

Market Leader provides a comprehensive paid inbound lead, automated marketing, and CRM solution to help agents acquire, engage, and nurture real estate leads.

Furthermore, Market Leader offers and guarantees you a number of exclusive seller and buyer leads in your target niche at a monthly rate.

1. Write Your Mission Statement

Every real estate agent’s business plan should begin with a mission statement, identifying your values and why your business exists. Your mission statement serves as the guide to achieving your ultimate business objective. When you create a solid clear mission statement, all other items identified in your realtor business plan should be aimed at fulfilling this statement.

Compass’ mission statement: “Our mission is to help everyone find their place in the world.” (Source: Compass )

Your mission statement should identify your target audience, what product or service you provide, and what makes your business distinct. As seen in the example above, a powerful mission statement should be short and concise but sums up a business objective.

Let’s take Compass’ mission statement above as an example: “Our mission is to help everyone find their place in the world.” The statement identifies what the company offers, for what reasons, and who it benefits.

2. Conduct a SWOT Analysis

SWOT is an acronym that stands for a business’ strengths, weaknesses, opportunities, and threats. The primary objective of these four elements is to assess a business by evaluating internal and external factors that can drive decision-making and help you make more money . Conducting a SWOT analysis as you develop your business plan for real estate uncovers opportunities to differentiate yourself from the massive competition currently on the market.

Strengths & Weaknesses

Strengths and weaknesses are internal parts of your organization. Strengths identify what product or services you provide better than others, your access to resources, and items that benefit your customers. Weaknesses are items that need improvement, lack of resources, or what your competition does better. These are items within your control to change because you can convert a weakness into a strength.

See the example below if “Agent X” was doing their SWOT analysis:

Opportunities & Threats

External factors drive opportunities and threats and are areas you can take advantage of to benefit your business. Examples of opportunities can be shifts in the current marketplace, emerging trends you can capitalize on, features that competitors lack, or even changes with your competitors. Threats, on the other hand, are anything that can negatively impact your business. You don’t have control over changing the opportunities or threats, but you can develop a practice to anticipate and protect your business against the threats.

The opportunities and threats for “Agent X” would be:

When you complete your SWOT analysis, use it as a guide when creating strategies to meet your business objectives. To gain the most benefit from creating a SWOT analysis, make sure you are being realistic about your business and evaluating it in its present state. You don’t want to be unrealistic by listing strengths or opportunities that don’t exist yet, and you want to allocate time and money to the most impactful solution to your business issues.

If “Agent X” completed the above SWOT analysis, a few strategies they could derive would be:

• Incentivize agents to keep them at the brokerage for longer
• Implement a technology-based key machine to reduce lost keys and keep the team accountable
• Find a competitive advantage against competing brokerages and use that in marketing messages

Zillow agent finder (Source: Zillow )

To help agents locate other brokerages operating in your preferred market, agents can use Zillow’s agent finder page as a research tool to see which agents or brokerages are operating in a specific area. You can find an agent by location, name, specialty, and language. Once you click on a Zillow profile , you can read their reviews, see their team members, contact and website information, and property listings. Take a deep dive into your competitor profiles and can use the information to implement strategies within your own business.

Visit Zillow

Read how our experts feel about this real estate lead generation company in our Zillow Premier Agent review .

3. Set Specific & Measurable Goals

You’re ready to set some business goals after clearly defining your mission statement and SWOT analysis. Goals can help set the tone to increase your performance and drive your business in the right direction. Your goals should have a definitive way to show progress, which can be a prime motivator to keep you on track to achieving them.

Each goal should follow a pattern to identify set criteria. This will ensure that your daily efforts are performed to meet business objectives within a set period. A way to do this is by using SMART goals:

Examples of SMART goals for agents or brokerages:

• Increase closed transactions by 20% to a total of 150 deals within the next year
• I will ask all closed clients for a referral and review within 30 days of closing the deal

Goals can be split into short-term and long-term goals. Short-term goal lengths vary between days and weeks but do not exceed six months. Short-term goals can also be worked on simultaneously with long-term goals. Long-term goals can take up to six months or more to complete and require careful planning and perseverance. A mix of short-term and long-term goals will help you maintain motivation.

All goals are equally important; however, success will stem from how you prioritize each one. Slowly add on additional goals as you have the capacity and feel comfortable with the current progress of your current set of goals. Without identifying your business goals, you’ll leave your results up to luck to attain your business objectives.

4. Plan Your Marketing Strategies & Tactics

Developing marketing strategies and tactics and implementing them help you identify and locate your current value proposition in the real estate industry, along with specific timelines for execution. In addition to determining your overall business objectives and goals, your marketing strategy and plan should include the following:

• Pinpoint general marketing goals
• Estimate projected marketing budget
• Know your geographic farm area data and identify your target niche audience
• Analyze market competition
• Identify your unique selling proposition
• Establish a timeline and set your plan in motion
• Track your progress and readjust as needed

While a marketing strategy identifies the overall marketing goals of your business, developing marketing tactics will help you achieve those individual goals. They can include referral business tactics, retention efforts, and ways to acquire new customers. For example, you can offer incentives to anyone who refers your business, or you can implement new email drip campaigns to help increase lead conversion rates.

These tactics should have set key performance indicators (KPIs) to help you evaluate your performance. For instance, a KPI you can set for your business could be that referral business should exceed 20% of your lead generation sources.

If you’re unsure how to put together your marketing plan, check out our article Real Estate Marketing Plan Template & Strategy Guide and download the free template to get started.

Postcard campaign example (Source: ProspectsPLUS! )

If direct mail is part of your promotion strategy, services like ProspectsPLUS! can help easily create and distribute mailers to a targeted area. It also has options for postcards , brochures, newsletters , flyers, and folders. You can also send mailers to prospective clients by geographic or demographic farm areas through its campaigns. Check out its templates and mailing options today.

Visit ProspectsPLUS!

Read how our experts feel about this real estate direct mail service in our ProspectsPLUS! review .

5. Create a Lead Generation & Nurturing Strategy

Having a successful lead generation strategy will help you maintain business growth. Lead generation can be performed organically and through paid advertisements to attract and convert prospective clients. In addition to generating leads, agents should have systems to manage, nurture, and re-engage with contacts to maximize opportunities.

Generating leads through a multipronged approach is the best way to maintain lead flow. Use organic strategies like hosting an open house, reaching out to your sphere of influence, and attending networking events. Employ paid generation strategies, such as purchasing leads from a lead generation company or setting up a website to funnel potential clients. Your marketing strategies will directly correlate with your lead generation strategies.

Every lead is an opportunity, even if they don’t immediately convert into a deal. Effectively nurturing leads can make sure no opportunity falls through the cracks. Agents can nurture leads by continuously engaging and developing relationships with prospective leads . It’s important to provide prospective clients with a constant flow of essential and relevant information, depending on where they are in the real estate buying or selling process.

Here are the top lead generation companies for real estate agents and brokers:

Engage more efficiently with buyer and seller leads using Market Leader’s new feature Network Boost. Network Boost has shown a 40% increase in agents successfully connecting with leads. Market Leader social media experts design highly targeted and optimized ads for your Instagram and Facebook. As visitors engage with your ads, they will be prompted to complete a form and funnel directly into your Market Leader client relationship manager (CRM). This will also trigger an automatic marketing campaign that nurtures your clients and lets you know they are ready to engage with you personally. Try Market Leader’s Network Boost today.

6. Calculate Your Income Goal

Your income goal is one of the most critical items to be included in your business plan. While this may be more difficult for new agents who are still learning the business, it’s still necessary to estimate the amount of money you will earn for the year. Work with an experienced agent or mentor to help you estimate your monetary goals. For professional agents, review your previous years to judge your income goals for the upcoming year.

To calculate your income goal and the amount of work you’ll need to complete to get to that goal, you’ll need to have some basic number estimates:

• Net income: The amount of money you will put in your pocket after commission splits with your real estate brokerage.
• Fee split with brokerage: This is the agreed-upon commission split you have with your brokerage for each completed transaction. For example, if you have a 70/30 split with your brokerage, you will collect 70% of the commission, and your brokerage will receive a 30% commission for each deal.
• Estimate of completed deals per year: You also want to estimate the number of deals you intend to complete yearly. Remember that some months will be busier than others, so make sure to account for holidays, weather, and your schedule.

Real Estate Yearly Goal Calculator

By figuring out these numbers, you can give yourself a realistic number for your income goal. Compute the gross income commission (GCI) or amount of money you must make before the commission splits and the average profit per deal and month you’ll need to reach your goal.

For a more detailed breakdown of your yearly goal, download and use our yearly goal calculator. Input your information into the highlighted yellow boxes, and the spreadsheet will automatically calculate the GCI, total deal count, and gross income you’ll have to earn each month to reach your goal. Adjust the average gross commission per deal and brokerage split as necessary.

FitSmallBusiness Year Goal Calculator

For additional information on real estate agent salaries, review our article Real Estate Agent Salary: How Much Do Real Estate Agents Make?

7. Set Times to Revisit Your Business Plan

Business plans are only effective if you use them. A business plan is a roadmap for your business, and you’ll need to revisit it often to ensure you’re staying on track. It should be a constant resource to guide you through meeting your goals and business objectives, but it’s not necessarily set in stone if you need to make any changes.

Agents should revisit their business plans monthly to measure progress and make any changes to stay the course. If you find that you’re missing the times set for your goals, then you should continue to revisit your business plan regularly. Changing the business plan itself should occur annually once you can have a complete picture of your yearly performance. Evaluating the business plan can help you discover new strategies and ensure you have the appropriate resources for the upcoming year.

Overall status of sales activities in the dashboard (Source: Pipedrive )

Sales software like Pipedrive can help you track your overall business performance when revisiting your business plan. It presents company sales data in easy-to-visualize dashboards that track your business performance and contains forecasting tools to project future revenue. It can maintain company and team goals with progress tracking to keep goals top of mind.

Visit Pipedrive

Read how our experts feel about this real estate customer relationship manager (CRM) system in our Pipedrive review .

Why Agents Need a Real Estate Business Plan

A real estate business plan keeps you up to date on market developments and one step ahead of your competitors. It also enables you to test lead-generating tactics and create new marketing campaigns while keeping track of results over time. A solid business plan for a real estate agent presents the following:

• Where you are at the moment
• Where you would like to be
• How you’re going to get there
• How to evaluate and measure your performance
• When and when to correct the course

Real Estate Business Plan Examples & Templates

Real estate agents and brokerages don’t have to build their business plans from scratch, as many resources provide different examples. Business plan templates can also have different objectives. Some are used to secure financing or help you focus on lead generation, while others are single-page plans meant to get you started.

Here are five real estate business plan examples you can use to create yours:

Lead Generation & Income Plan

Market Leader business plan example (Source: Market Leader )

This business plan is from Market Leader, a third-party lead generation platform. It specializes in lead generation, marketing, and converting leads into customers with an attractive IDX (Internet Data Exchange) website and robust automation tools. Agents can also participate in purchasing leads through their lead products to receive a guaranteed number of leads per month.

A Single-page Business Plan

Business plan for real estate (Source: PngFind )

Agents who are new to writing a business plan can start small. Business plans do not have to be multipage to be effective. This single-page business plan helps identify a single goal followed by three areas to focus on and five objectives for each focus area. As real estate agents begin to feel comfortable with goal setting and completion, they can continue to add to this single-page business plan with duplicate pages, identifying additional goals.

Business Plan for Real Estate Brokers

Real estate broker business plan (Source: AgentEDU )

This robust real estate broker business plan is designed to address organization and management goals. It contains pages identifying personnel information like title, job description, and salary. The business plan also encourages the broker to identify operational goals for future personnel changes. It’s best suited for a broker with a larger team to help drive operational change.

Business Plan With Detailed Financials

Example of real estate agent business plan template (Source: FinModelsLab )

This multipage business plan contains eye-catching graphics and detailed company financial information for real estate agents and brokers seeking funding from outside investors. One of the last sections of the business plan is a financial planning section geared toward showing how viable your business is through your provided income statements, cash flow, and balance sheet reports.

Real Estate Developers’ Business Plan

Realtor business plan template sample (Source: Upmetrics )

Upmetrics’ real estate business plan templates are easy to edit and share and contain professional cover pages to help agents convert their business ideas into actionable goals. The business plans from Upmetrics are geared toward agents looking to transition into real estate development. This plan includes vital sections important for a developer to analyze, such as building location, demand for housing, and pricing.

Real estate CRM (Source: Market Leader )

Market Leader’s business plan is centered around driving more business through lead generation. It helps agents understand their lead sources, average sales price, and how much commission was earned in a given year. It also allows agents to set income and transactional goals for the following year.

Visit Market Leader

Bottom Line

Whether you are a new real estate agent or looking to grow your brokerage, writing a real estate business plan template will help you define the steps needed to build a successful business . It serves as a guided roadmap to help you achieve your business goals, identify areas of improvement, and provide guidance in all aspects of your business, from marketing, operations, and finance to your products and services. Business plans can help determine if your business is viable and worth the financial investment.

Frequently Asked Questions (FAQs)

What is a real estate business plan.

A real estate business plan is a document that presents an outline of your organizational goals. A business plan lays out future company goals and structured procedures to achieve them. Business plans commonly contain plans for one to five years at a time, though they can differ from investor to investor.

A real estate business plan will put you in a position to succeed while also assisting you in avoiding potential pitfalls. It serves as a guide to follow when things go as expected and when they diverge from the initial plan of action. Also, a real estate business plan will ensure that investors know the steps they need to take to succeed.

How do I jump-start my real estate business?

It is important to note that starting a real estate business is not a simple task. Before launching a firm in any field, entrepreneurs should spend numerous hours researching and developing a solid business plan. As you start your real estate business, use the following tips as guidance:

• Think about your professional goals
• Conduct extensive research
• Organize your finances
• Create a business plan
• Establish an LLC
• Make a marketing plan
• Create a website
• Start campaigns
• Keep track of leads
• Develop a network of connections

How can I grow my real estate business?

You can use multiple strategies and ways to grow your real estate business. They include:

• Assess your current situation
• Invest in your professional growth
• Establish strategic alliances
• Take advantage of omnichannel marketing
• Start blogging
• Create consistent social media profiles and campaigns
• Improve your website
• Consider working with a marketing company
• Optimize your signs and direct mail

About the Author

Find Jealie On LinkedIn

Jealie Dacanay

Jealie is a staff writer expert focusing on real estate education, lead generation, marketing, and investing. She has always seen writing as an opportunity to apply her knowledge and express her ideas. Over the years and through her internship at a real estate developer in the Philippines, Camella, she developed and discovered essential skills for producing high-quality online content.

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• Writing a Business Plan

Writing a business plan may seem a daunting task as there are so many moving parts and concepts to address. Take it one step at a time and be sure to schedule regular review (quarterly, semi-annually, or annually) of your plan to be sure you on are track to meet your goals.

Why Write a Business Plan?

Making a business plan creates the foundation for your business. It provides an easy-to-understand framework and allows you to navigate the unexpected.

Quick Takeaways

• A good business plan not only creates a road map for your business, but helps you work through your goals and get them on paper
• Business plans come in many formats and contain many sections, but even the most basic should include a mission and vision statement, marketing plans, and a proposed management structure
• Business plans can help you get investors and new business partners

Source: Write Your Business Plan: United States Small Business Association

Writing a business plan is imperative to getting your business of the ground. While every plan is different – and most likely depends on the type and size of your business – there are some basic elements you don’t want to ignore.

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NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles ( E ) are available only to NAR members and require the member's nar.realtor login.

Defining Your Mis​sion & Vision

Writing a business plan begins by defining your business’s mission and vision statement. Though creating such a statement may seem like fluff, it is an important exercise. The mission and vision statement sets the foundation upon which to launch your business. It is difficult to move forward successfully without first defining your business and the ideals under which your business operates. A company description should be included as a part of the mission and vision statement. Some questions you should ask yourself include: 

• What type of real estate do you sell?
• Where is your business located?
• Who founded your business?
• What sets your business apart from your competitors?

What is a Vision Statement ( Business News Daily , Jan. 16, 2024)

How to Write a Mission Statement ( The Balance , Jan. 2, 2020)

How to Write a Mission Statement ( Janel M. Radtke , 1998)

Using a SWOT Analysis to Structure Your Business Plan

Once you’ve created a mission and vision statement, the next step is to develop a SWOT analysis. SWOT stands for “Strengths, Weaknesses, Opportunities, and Threats.” It is difficult to set goals for your business without first enumerating your business’s strengths and weaknesses, and the strengths and weaknesses of your competitors. Evaluate by using the following questions:

• Do you offer superior customer service as compared with your competitors?
• Do you specialize in a niche market? What experiences do you have that set you apart from your competitors?
• What are your competitors’ strengths?
• Where do you see the market already saturated, and where are there opportunities for expansion and growth?

Strength, Weakness, Opportunity, and Threat (SWOT) ( Investopedia , Oct. 30, 2023)

How to Conduct a SWOT Analysis for Your Small Business ( SCORE , Apr. 28, 2022)

SWOT Analysis Toolbox ( University of Washington )

Setting ​Business Goals

Next, translate your mission and vision into tangible goals. For instance, if your mission statement is to make every client feel like your most important client, think about the following:

• How specifically will you implement this?
• Do you want to grow your business?
• Is this growth measured by gross revenue, profit, personnel, or physical office space?
• How much growth do you aim for annually?
• What specific targets will you strive to hit annually in the next few years?

Setting Business Goals & Objectives: 4 Considerations ( Harvard Business School , Oct. 31, 2023)

What are Business Goals? Definition, How To Set Business Goals and Examples ( Indeed , Jul. 31, 2023)

Establishing a Format

Most businesses either follow a traditional business plan format or a lean startup plan.

Traditional Business Plan

A traditional business plan is detailed and comprehensive. Writing this business plan takes more time. A traditional business plan typically contains the following elements:

• Executive Summary
• Company description
• Market analysis
• Organization and management
• Service or product line
• Marketing and sales
• Funding request
• Financial projections

Lean Startup Plan

A lean startup plan requires high-level focus but is easier to write, with an emphasis on key elements. A lean startup plan typically contains the following elements:

• Key partnerships
• Key activities
• Key resources
• Value proposition
• Customer relationships
• Customer segments
• Cost structure
• Revenue stream

Creating a Marketing Plan

You may wish to create a marketing plan as either a section of your business plan or as an addendum. The Marketing Mix concerns product , price , place and promotion .

• What is your product?
• How does your price distinguish you from your competitors—is it industry average, upper quartile, or lower quartile?
• How does your pricing strategy benefit your clients?
• How and where will you promote your services?
• What types of promotions will you advertise?
• Will you ask clients for referrals or use coupons?
• Which channels will you use to place your marketing message?

Your Guide to Creating a Small Business Marketing Plan ( Business.com , Feb. 2, 2024)

10 Questions You Need to Answer to Create a Powerful Marketing Plan ( The Balance , Jan. 16, 2020)

Developing a Marketing Plan ( Federal Deposit Insurance Corporation )

Forming a Team

Ensuring the cooperation of all colleagues, supervisors, and supervisees involved in your plan is another important element to consider. Some questions to consider are:

• Is your business plan’s success contingent upon the cooperation of your colleagues?
• If so, what specifically do you need them to do?
• How will you evaluate their participation?
• Are they on-board with the role you have assigned them?
• How will you get “buy in” from these individuals?

How to Build a Real Estate Team + 7 Critical Mistakes to Avoid ( The Close , May 17, 2023)

Don’t Start a Real Estate Team Without Asking Yourself These 8 Questions ( Homelight , Jan. 21, 2020)

Implementing a Business Plan and Reviewing Regularly

Implementation and follow-up are frequently overlooked aspects to the business plan, yet vital to the success of the plan. Set dates (annually, semi-annually, quarterly, or monthly) to review your business plans goals. Consider the following while reviewing:

• Are you on track?
• Are the goals reasonable to achieve, impossible, or too easy?
• How do you measure success—is it by revenue, profit, or number of transactions?

And lastly, think about overall goals.

• How do you plan to implement your business plan’s goals?
• When will you review and refine your business plan goals?
• What process will you use to review your goals?
• What types of quantitative and qualitative data will you collect and use to measure your success?

These items are only a few sections of a business plan. Depending on your business, you may want to include additional sections in your plan such as a:

• Cover letter stating the reasoning behind developing a business plan
• Non-disclosure statement
• Table of contents

How To Write a Business Proposal Letter (With Examples) ( Indeed , Jul. 18, 2023)

How To Implement Your Business Plan Objectives ( The Balance , Aug. 19, 2022)

The Bottom Line

Creating a business plan may seem daunting, but by understanding your business and market fully, you can create a plan that generates success (however you choose to define it).

Real Estate Business Plans – Samples, Instructional Guides, and Templates

9 Steps to Writing a Real Estate Business Plan + Templates ( The Close , Apr. 3, 2024)

How to Write a Real Estate Business Plan (+Free Template) ( Fit Small Business , Jun. 30, 2023)

The Ultimate Guide to Creating a Real Estate Business Plan + Free Template ( Placester )

Write Your Business Plan ( U.S. Small Business Administration )

General Business Plans – Samples, Instructional Guides, and Templates

Business Plan Template for a Startup Business ( SCORE , Apr. 23, 2024)

Guide to Creating a Business Plan with Template (Business News Daily, Mar. 28, 2024)

Nine Lessons These Entrepreneurs Wish They Knew Before Writing Their First Business Plans ( Forbes , Jul. 25, 2021)

How to Write a Business Plan 101 ( Entrepreneur , Feb. 22, 2021)

Books, eBooks & Other Resources

Ebooks & other resources.

The following eBooks and digital audiobooks are available to NAR members:

The Straightforward Business Plan (eBook)

Business Plan Checklist (eBook)

The SWOT Analysis (eBook)

The Business Plan Workbook (eBook)

Start-Up! A Beginner's Guide to Planning a 21st Century Business (eBook)

Complete Book of Business Plans (eBook)

How to Write a Business Plan (eBook)

The Easy Step by Step Guide to Writing a Business Plan and Making it Work (eBook)

Business Planning: 25 Keys to a Sound Business Plan (Audiobook)

Your First Business Plan, 5 th Edition (eBook)

Anatomy of a Business Plan (eBook)

Writing a Business Plan and Making it Work (Audiobook)

The Social Network Business Plan (eBook)

Books, Videos, Research Reports & More

As a member benefit, the following resources and more are available for loan through the NAR Library. Items will be mailed directly to you or made available for pickup at the REALTOR® Building in Chicago.

Writing an Effective Business Plan (Deloitte and Touche, 1999) HD 1375 D37w

Have an idea for a real estate topic? Send us your suggestions .

The inclusion of links on this page does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this page complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.

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Real Estate Business Plan

People would always need to find places. Be it for offices, homes, and whatnot.

Finding the ideal place irrespective of your needs and requirements is never a cakewalk, to begin with.

You can go through a number of real estates business plan templates before you write your plan.

Industry Overview

The market size, measured by revenue, of the Real Estate Sales and brokerage industry, is $156.2bn in 2021, and the industry is expected to increase by 0.4% in 2021.

Also, the market is changing at a rapid rate and the way people use spaces is changing at a rapid rate too.

Hence, to get on or stay on the higher end of the spectrum you’ll need to upskill and change the way you do business constantly.

But that is a fair trade for the amount of growth and profitability this industry has to offer.

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

Things to Consider Before Writing a Real Estate Business Plan

Be specific.

The real estate industry is broad when it comes to work and what you can do. It can either be a source of primary or passive income. At the same time, you might be involved in the industry as an investor, agent, or builder. Decide what you want to do and plan on that basis.

Do your research

The trends of the real estate business change constantly, hence doing your research and updating it constantly is a crucial part of your profession.

As your knowledge and expertise is your greatest asset in this industry, keep expanding it to stay at the top of things.

Build a team of skilled professionals

Having a team you can build your real estate business with is essential.

Select a group of individuals with a diverse set of talents ranging from good communication skills to brilliant analytical skills. Given the dynamics of the real estate business, you never know what skills might come in handy in your business journey.

Be ready for change

As we have constantly discussed, real estate is a dynamic industry. Change is the only constant you’ll have in this business.

Thus, it is important for everything from your plan and way of doing business to be change-friendly.

Sources of Funding for a Real Estate Business

Gaining funds is one of the major reasons for writing a business plan. And here are a few good funding options for your real estate business:

A traditional loan is one of the most basic options for getting funded. You can opt for this if you have a good credit score.

Non-bank mortgage lending

This is a good option if you don’t want to go through a lot of paperwork.

The asset-based mortgage

For this, the lenders look at the rental value of your property and provide a loan on that basis. It is a good option if you don’t want or can’t get a loan based on your personal assets or income.

Above all, it is essential to plan your business to figure out your funding requirements and the right way to fulfill the same.

Write Your Business Plan

If you have enough connections, and the ability to find places for people that have attributes they want and need then a real estate business can be a profitable one for you.

A business plan helps you get funded, explain your ideas to the stakeholders of your business, and make better decisions.

Hence, planning is an important aspect of starting or growing your business.

It has been created using Upmetrics online business plan software that helps you create dynamic and customizable plans anywhere and at any time.

Our sample real estate business plan can help you with writing a well-rounded business plan for your business. It can act as a guide and prevent you from getting stuck in a certain section for too long.

Real Estate Business Plan Outline

This is the standard real estate business plan outline which will cover all important sections that you should include in your business plan.

• Market Opportunity
• Demand for Housing
• Financing & Investment Forecast
• Introducing Kegan
• Business Model
• Short Term Goals
• Long Term Strategies
• Keys to Success
• Contemporary Living for the 21″ Century
• The Complete Package
• Pricing Strategy
• Implementation Strategy – Action Plan
• Target Market Overview
• Housing Shortage Overview in Saudi Arabia
• Housing Shortage Overview in Riyadh
• Housing Prices
• Kegan Home Prices
• Market Positioning & Brand
• Marketing Strategies
• Sales Strategies
• Sales Process
• Competitive Landscape
• Competitive Advantages
• Rashid Bin Said
• Director of Construction
• Member name
• Chief Accountant
• Director of Marketing & Sales
• Other Staff
• Independent Directors
• Solid Balance Sheet
• Impressive Cashflow
• Financial Summary
• Financial Assumptions
• Income Statement (Five-Year Projections)
• Balance Sheet (Five-Year Projections)
• Cash Flow Statement (Five-Year Projection)

After getting started with Upmetrics , you can copy this sample real estate business plan into your business plan and modify the required information and download your real estate business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Download a sample real estate business plan

Need help writing your business plan from scratch? Here you go;  download our free real estate business plan pdf  to start.

It’s a modern business plan template specifically designed for your real estate business. Use the example business plan as a guide for writing your own.

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About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Real Estate Business Plan Template

The world’s #1 real estate business plan template — it’s the quickest and easiest way to create a winning real estate business plan, period.

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It Took Us 17 Years to Create the Ultimate Real Estate Business Plan Template for You

Hi, I’m Dave Lavinsky, the co-founder and President of Growthink.

I’m honored and flattered to have been recognized as the world’s foremost business planning expert by BusinessWeek, Forbes and others.

Seventeen years ago we started writing business plans for entrepreneurs, executives and business owners like you.

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Simply Fill in the Blanks

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Automatic Financials

Simply type in some numbers, like your salary and expected growth, and our template automatically calculates your complete 5-year financial projections.

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Turn Your Ideas to Reality

If you don’t have an action plan for executing on your ideas, they’ll never materialize.

That’s why Growthink’s Ultimate Real Estate Business Plan Template includes an Operations Plan section.

This section takes you through our proven and proprietary process for creating an Operations Plan that will transform your ideas into reality.

Improve Your Strategy

Growthink’s Ultimate Real Estate Business Plan Template helps you build a strategically sound business.

It guides you through key questions about your company, marketing and operations strategies, and gives you tons of ideas for improvement.

For example, in the Marketing Plan section, you’ll see several of the best marketing tactics to get new customers.

Expert Answers

Our Ultimate Real Estate Business Plan Template “Members Area” gives answers to all your questions, plus access to our amazing customer support team.

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“I knew I had to create a business plan, but I didn’t know how to go about doing that.

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You were right. I was able to easily create my financials (I was really scared about that going in) and editing the document was pretty straightforward.

And, then, a friend of mine introduced me to some angel investors. And when I showed them the business plan, they wrote me a check on the spot!.”

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“I purchased this product and it was amazing! Guess what? I got my loan and had 2 other offers.

My biz plan was done in 12 hours. Worth every penny!”

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I wanted to thank you for the business advice around creating a compelling business plan.

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Here’s a small sample of the 300+ media sources in which Growthink has been featured:

Frequently Asked Questions

Below are answers to your most frequently asked questions:.

Immediately upon purchasing Growthink’s Ultimate Real Estate Business Plan Template, you will be taken to our Member’s Area where you can instantly download our template and begin working on your business plan.

If for any reason you are not delighted with our product, simply contact our friendly support desk and you’ll be issued a full refund. You have an entire year to request a refund if desired.

Unlike other software that charges you a fee month after month after month, you only pay once for Growthink’s Ultimate Real Estate Business Plan Template and you own it.

You can create an unlimited number of business plans with Growthink’s Ultimate Real Estate Business Plan Template. Once you purchase it, you have lifetime access to use it for any business in which you’re involved, now or in the future.

Yes, Growthink’s Ultimate Real Estate Business Plan Template works flawlessly on both PCs and Macs.

Growthink’s Ultimate Real Estate Business Plan Template is designed for both established Real Estate businesses and startups.

Yes , you can! Anyone can easily follow our basic instructions and create a great business plan quickly and easily. Plus, my expert team is available to help you if you have any questions.

More Feedback

Even more feedback from the over 100,000+ customers who love growthink’s ultimate real estate business plan template & other business plan templates.

“Before Growthink’s Ultimate Business Plan Template, I was really frustrated.

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“Finding Dave Lavinsky and his Business Plan Template allowed me to take my dream of owning a business and make it a reality.

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“I want to say how impressed I am with the planning template product I bought from you. It’s saving me a ton of time and effort, and enabling me to develop a new plan so much easier and faster than before.”

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“I didn’t feel I knew enough to write a business plan… But this is a very good and thorough template.”

Brian Serup

“Would you like some more positive feedback?

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“We review funding requests all the time. Dave Lavinsky is right: most of them don’t address what we need to see and totally miss the point. After recommending this product, we see them pass with flying colors, without fail.”

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“Hi Dave, You are a wonder. Your Financial Business Modelling put in the Excel format is an excellent way to make entrepreneurs understand the basic concept of finances. Your direct involvement and assistance in my case is very much appreciated. “

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“Thank you for creating a template par excellence. It’s one of the best ‘Business Plan’ templates that I’ve ever come across.”

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“Dave Lavinsky really understands how to create compelling business plans and raise capital, and his products succeed in infusing this knowledge.”

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“I was so happy to find your business plan template. It was just what I needed to get my new business started in the right direction. The template pushed me to think in areas I had not put much focus on before, and I was able to put all the information in a well laid out plan and have it look very professional.

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Real Estate Business Plan Template

Download this free real estate business plan template, with pre-filled examples, to create your own plan..

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Available formats:

What you get with this template

A complete business plan.

Text and financials are already filled out and ready for you to update.

• SBA-lender approved format

Your plan is formatted the way lenders and investors expect.

Edit to your needs

Download as a Word document and edit your business plan right away.

• Detailed instructions

Features clear and simple instructions from expert business plan writers.

All 100% free. We're here to help you succeed in business, no strings attached.

Get the most out of your business plan example

Follow these tips to quickly develop a working business plan from this sample.

1. Don't worry about finding an exact match

We have over 550 sample business plan templates . So, make sure the plan is a close match, but don't get hung up on the details.

Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.

2. Remember it's just an example

Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

Use the information, financials, and formatting for inspiration. It will speed up and guide the plan writing process.

3. Know why you're writing a business plan

To create a plan that fits your needs , you need to know what you intend to do with it.

Are you planning to use your plan to apply for a loan or pitch to investors? Then it's worth following the format from your chosen sample plan to ensure you cover all necessary information.

But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

More business planning resources

10 Qualities of a Good Business Plan

Business Plan Template

How to Write a Real Estate Business Plan

Simple Business Plan Outline

How to Write a Business Plan

How to Write a Business Plan for Investors

How to Start a Business With No Money

How to Start a Real Estate Business

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Ultimate Guide: 11 Points to Writing a Real Estate Business Plan

Failing to plan is planning to fail. Your business plan is the GPS for success. Instead of wandering, push towards your goals and objectives with clear direction. Developing a real estate business plan is critical to forming a healthy and sustainable business. 

A real estate business plan is an important step for any real estate agent looking to build a successful career in the industry. While there is no one-size-fits-all approach, there are certain key elements that should be included in any plan. First and foremost, it is essential to set clear goals and objectives.

A study of 2,877 business owners found that companies are twice as likely to secure loans and funding if they have a business plan and 75% more likely to grow. Another study showed that 64% of companies who created a plan increased their businesses, compared to 43% of companies that hadn't yet finished a plan. 

Your own business plan is an essential tool for any business, small or large. Real estate agents use business plans to map their marketing strategies, target their advertising, and track their progress. A business plan helps agents set goals and stay on track throughout the year. It is also a valuable reference point when meeting with clients and potential investors. 

While there are many different ways to create a real estate business plan, certain elements should be included in every scenario. These elements include an overview of the business, the company's goals and objectives, a marketing strategy, and a financial analysis. By having these key components, companies can ensure that their real estate business plan is comprehensive and will help them achieve their desired results.

Harvard Business Review (HBR) stated that the chances of success rose by 12% for those that spent no longer than three months on their plan . With any longer proving futile. So, how do you write a business plan for your real estate business without getting bogged down in the details? In this post, we'll look at actionable steps agents and brokers can take to outline, execute and measure the performance of a business plan.

As a real estate agent, you know that the housing market can be unpredictable. You need to be prepared for the ups and downs of the market, and one way to do that is to have a business plan. Your business plan will help you set goals and track your progress. It will also force you to think about the costs of running your business and how you will generate leads. There are many online resources that can help you write a business plan, but the most important thing is to get started. By taking the time to write a plan, you will ensure that your business is ready for whatever the housing market throws your way.

What is a real estate business plan?

A business plan is a written document that captures the future of your business. It details what you plan and how you plan to do it.

Real estate business plans are essential for two reasons. First, they provide a road map for agents to follow as they work to build their businesses. Second, they force agents to think through all the crucial aspects of their business, such as their marketing efforts, target market, and financial goals. 

By taking the time to write a Real Estate Business Plan, agents can ensure that they are taking all the necessary steps to build a successful business.

A Real Estate Business Plan is an essential tool for any business, whether you are just starting or have been in business for years. There are many benefits to creating a Real Estate Business Plan, including: 

• Having a Real Estate Business Plan forces you to take a step back and assess your business as a whole. It allows you to see where your business stands, and identify any areas that need improvement.
• A Real Estate Business Plan provides a roadmap for your business. It can help you to set goals and track your progress over time.
• A Real Estate Business Plan can help secure your business funding. If you seek investment from Venture Capitalists or Banks, they will often require a copy of your business plan before considering your request.
• A Real Estate Business Plan can help you to attract and retain top talent. If you are looking to hire employees or contractors, having a well-crafted business plan can be a significant selling point.
• A Real Estate Business Plan can be a valuable tool for managing day-to-day operations. A clear and concise plan can help you better decide where to allocate resources and how to utilize your team's time and talents best.
• A Real Estate Business Plan can help you to measure and track your marketing efforts. By setting specific goals and objectives, you can more effectively gauge the success of your marketing campaigns and make necessary adjustments along the way.
• A Real Estate Business Plan can serve as a valuable sales tool. A professional business plan can give you a significant competitive advantage if you are looking to sell properties or convert leads into clients.
• A Real Estate Business Plan helps to keep you organized and on track. Trying to run a successful real estate business without a plan is like trying to drive from New York to Los Angeles without a map - chances are, you'll get lost along the way!

Having a Real Estate Business Plan gives you credibility in the eyes of others. If you are working with other professionals such as lenders, appraisers, or title companies, having a well-developed business plan shows that you are serious about your business and increases the likelihood that they will want to work with you in the future.

Last but not least, creating a Real Estate Business Plan is empowering! Taking the time to develop a comprehensive plan shows that you believe in yourself and your business and sets the foundation for long-term success.        

Precisely, it conveys your business goals, the strategies and tactics you'll use to achieve them, potential problems you may run into along the way and how to overcome them, roles and responsibilities, SWOT analysis, and measurement strategies.

What should a real estate business plan include?

Real estate business plans are different from traditional business plans. 

Real estate agents need to focus on their target market, their uniqueness, and how they will succeed against the competition. Real estate business plans should also include an analysis of the current market conditions and the potential for growth in the future. In addition, real estate agents should outline their marketing strategy and have a budget for advertising and promotions. By taking the time to create a comprehensive business plan, real estate agents can increase their chances of success in this competitive industry.

Real estate business plans vary in length and complexity, but all should include the following elements: 

• An overview of the real estate market 
• A description of the agent's target market 
• A marketing plan 
• A financial plan 
• A discussion of the agent's competitive advantages 

Real estate business plans provide a roadmap for agents to achieve their goals. They should include specific strategies for generating leads, marketing properties, and closing deals. The business plan should also outline the agent's budget and target income. Additionally, the real estate business plan should set forth a schedule for prospecting, listing appointments, and open houses. By following a real estate business plan, agents can increase their chances of success in real estate.

How do you assemble a real estate business plan?

A business plan is essential for any real estate business, whether you're just starting out or have been in the industry for years. It provides a roadmap for your business, laying out your goals and strategies for achieving them. But how do you go about assembling a business plan?

First, you'll need to identify your target market. Who are you trying to reach with your real estate business? Once you know your target market, you can start developing your marketing strategy. What methods will you use to get potential clients? How will you differentiate yourself from other real estate businesses in your area?

Next, you'll need to put together a financial plan. What are your revenue sources? How much money do you expect to bring in each month? What are your expenses? How much do you need to save for a rainy day? A clear financial picture will help you make sound decisions for your business.

Lastly, don't forget to include a personal development plan. What skills do you need to improve to succeed in the real estate business? What classes or training programs can you take to close more deals and earn more commissions? A well-rounded business plan will help ensure your real estate business is booming.

Writing a Real Estate Business Plan in 11 Easy Steps

1. write a detailed business description.

There's a story and context behind your business, and the business description is where that should shine. Write a brief overview of your Real Estate business. Include your business goals and how you plan on achieving them. Then create a description of your company, including its history, structure, and other relevant information.

The mission statement is part of the business description — which helps keep the rest on the track. Many mission statements follow a familiar format, like:

"To be the best, full-service Real Estate company in the Triangle and to enhance our quality of life through active community involvement.".

In a microstudy of 200 mission statements, it was found that mission statements most often talk about the company's dedication to customers (85%), shareholders (37%), employees (21%), and society (3%).

As well as a defined mission statement, make sure to include:

• When you were founded
• Where you are located
• Who the leaders are
• Special advantages/partnerships
• Market opportunities
• Legal structure

A very brief real estate business description example is:

"Norris & Company Real Estate is Vero Beach's premier upscale real estate firm. They specialize in luxury waterfront homes and condominiums, particularly in Vero Beach and Indian River County, FL."

2. Market Analysis

Research the Real Estate market in your area and identify any trends or opportunities. Include this information in your business plan.

Real estate agents must constantly be aware of the market conditions in their area to serve their clients best. Agents can provide expert guidance and advice by understanding the trends and opportunities.

When writing your Real Estate business plan, including a comprehensive analysis of the market conditions in your area. It will help you better understand your client's needs and identify potential opportunities.

Your market analysis should include:

• An overview of the Real Estate market in your area
• Identification of any trends or opportunities
• An explanation of how you will address these trends or options in your business plan

By including this information in your Real Estate business plan, you will be able to show potential clients that you are knowledgeable and prepared to help them navigate the Real Estate market.

3. Perform a SWOT Analysis

A SWOT analysis is a technique used to identify and define several key characteristics that will impact your business: Strengths, Weaknesses, Opportunities, and Threats.

Think of it this way:

Strengths and Weaknesses are internal. Threats and Opportunities are external.

An analysis can be as simple as making lists of items under each category.

For example, a strength could be a solid and experienced sales team, while a weakness might be that your business is expensive to run because you haven't nurtured supplier relations.

It could be as simple as filling four sheets of paper with descriptions of the strengths, weaknesses, opportunities, and threats — collaboratively or alone. To make the answers clearer and the exercise more manageable, you can use questions like:

• What do our competitors do better than us? Threat .
• What's our unique selling point? Strength .
• Why have customers churned in the past? Weakness .
• Which markets are underserved in your territory? Opportunities .

4. List Your #1 SMART Goal

It's great to be ambitious, but focusing on one goal makes it easier to stay motivated, track progress, and see the measurable effect of achieving it. Even better if that goal is a SMART Specific, Measurable, Attainable, Realistic, and Timed – goal.

Examples of SMART goals you might set for your growing real estate business are:

• Build a new real estate website in the next three months
• Hire and onboard three new SDRs in the next six months
• Increase monthly leads by 50% by next year
• Sell ten houses in the Dallas metro area in the next 30 days.

Pick one at a time and focus on it! Sticking to an achievable goal with a time limit makes it more likely to come to fruition. And, even just writing it down makes you 42% more likely to attain it.

5. Identify Your Market Niche

Before setting out your facts and figures, it's essential to spotlight your target market and how you'll serve this niche. It helps you decide what's realistic and feasible to achieve in your business plan.

Determining your market niche is a fancier way of saying: Who are your services best suited to? While honing in on a narrow target seems a little exclusionary, niche marketing can save you time, effort, and money on marketing.

One tool to help you define your market is a buyer persona. A persona is a fictional typification of your ideal customer, with information that enables you to steer your sales and marketing in the right direction.

It's essential to assess your niche and ensure it is consistent with the market in your area.

For example, if you've decided to focus on first-time buyers, do some research to look at relevant stats and figures:

• What percentage of sales in your market were to first-time buyers in the last 12–14 months?
• What was the average sales price to first-time buyers?

Also, assess how competitive this market is:

• Are you the only agent catering to the young first-timer?
• Are you competing with well-known heavy hitters?

A competitive SEO audit can be a helpful starting point in finding your competitors in the online space, where almost all leads will turn at some point in the buying process.

6. Implementation Plan

Before you can begin implementing your real estate business plan, you must clearly understand your goals and objectives. What are you trying to achieve with your business? Are you looking to buy and hold properties for long-term appreciation, or are you more interested in flipping houses for a quick profit? 

Once you have a good idea of your goals, you can start to put together a plan for how to achieve them. For example, if you're interested in buying and holding properties, you'll need to generate enough income from rentals to cover the mortgage and other expenses. If you're more interested in flipping properties, you'll need to find motivated sellers and then negotiate deals that provide you with a healthy profit margin. 

Regardless of your goals, careful planning is essential for success in the real estate business.

Breaking your goals into action steps makes them more tangible and ensures you're making strides to fulfill them. Here are some keys to converting your real estate business plan into actual business practices.

7. Monitoring & Evaluation

Successful real estate businesses have a plan to monitor and evaluate their progress. This plan includes setting clear goals, measuring progress against those goals, and making adjustments as needed. Without this proactive approach, it can be challenging to identify areas of improvement or stagnation. 

Additionally, a well-executed monitoring and evaluation plan can help to keep employees focused and on track. By regularly assessing performance and goal progress, businesses can ensure that they are making the most of their resources and achieving their desired results. Ultimately, a sound monitoring and evaluation plan are crucial for any real estate business that wants to stay ahead of the competition.

8. Risk Management

Real estate investing comes with a certain amount of risk. But with a well-thought-out risk management strategy, you can minimize the potential for loss and maximize your chances for success.

One of the most critical aspects of risk management is diversification. Investing in various property types in different markets spreads your risk and increases your chances of finding a profitable investment.

Another critical element of risk management has a solid business plan. Thoughtfully consider each step of the real estate investing process, from finding deals to financing them to managing the properties. Have a clear exit strategy for each investment to know when to sell or refinance. And always remember to stay within your comfort level; don't let greed or fear make decisions for you.

With careful planning and discipline, you can create a real estate investment portfolio that withstands market fluctuations and generates long-term wealth.

9. Financial Plan

Having a sound financial plan for your business is essential. To assist you, we've created spreadsheets you can use to estimate goals, income, and expenses. You will find specific instructions in the spreadsheets, but here are some guidelines for creating a financial plan:

To create your plan, determine what your expenses will be.

Here are three main areas your expenses may fall into:

• Licensing: These expenses will include training, state exam fees, etc.
• Personal: This can consist of your wardrobe, technology fees (like computer and phone), and car fees.
• Business: Business expenses include broker fees, website and MLS fees, marketing, advertising, etc.

Our template divides these expenses into the startup and yearly costs to help you discern which payments will recur and which are one-time-only. Here's an example of what your startup expenses might look like.

Yearly expenses might include recurring costs like office rent, electricity bills, and annual license fees.

Estimating income is the biggest concern for most new agents. To do this, you must decide how much money you need to make in your first year and how much you would like that figure to grow. You will also need to research some basic statistics for your market, like the average sale price for homes.

Use our business plan template to help calculate these numbers.

Transactions and Leads 

To meet your income goals and cover expenses, you'll need to conduct a certain number of transactions. And, to complete a certain number of transactions, you'll need to work a set number of leads. There's no need to work this figure out by hand. ‍

Our template will automatically calculate the number of transactions and leads you will probably need to meet your goals. Still, you will have to assess these figures to decide whether they are reasonable. For example, if you plan to work part-time as an agent in your first year but need to close 20 transactions to meet your goals, you are unlikely to have enough time.

10. Create a Personal Development Plan

A personal development plan is an essential tool for any real estate business. By taking the time to assess your strengths and weaknesses, set goals, and create a roadmap for success, you can ensure that your business is on track to reach its full potential. While it may seem daunting, creating a personal development plan is simple. 

Start by taking stock of your current situation. What are your strengths and weaknesses? What are your goals for the future? Once you clearly understand where you are starting, you can begin to map out a plan of action. Set realistic goals and create a timeline for achieving them. Put together a resources list and ensure you have everything you need to reach your goals. Finally, implement your plan and monitor your progress along the way.

Remember, your development plan should be flexible and adapt as your needs change over time. With some planning and effort, you can create a roadmap for success that will help you achieve your long-term goals in the real estate business.

11. Write an Executive Summary that Captures the Vision

Your executive summary is an anchor point you can use to understand the overall goals, cement the parameters of your target market, and make decisions aligned with your plan. It's also a way to get inspired by your original vision.

For real estate, it would include points on:

• Target neighborhoods and price ranges
• Target clients and a brief description of the persona
• Brief marketing plan overview
• Market threats and opportunities

Think of the executive summary as the section of your business plan you would explain to a friend a football game when asked how you plan to make money as an agent or broker in your local town/ city or state.

Note: due to the specific details in the executive summary, this part of the business is typically one of the last completed items.

Real Estate Business Plan Template

If you're considering starting a real estate business, you'll need to create a business plan template. Here's a basic template that you can use to get started. Remember that your business plan should be tailored to your specific business and industry.

• Executive Summary

The executive summary is a brief overview of your business plan. It should include your company's mission statement and an overview of your products or services, target market, and growth strategy.

• Company Description

This section will provide an overview of your company, including its history, structure, and team. Be sure to include information on your company culture and values.

• Mission statement

In this section, you will summarize the reason for being and the guiding principles of your organization. For example: "We are a nonprofit that provides free legal aid to those in need." You can also provide a brief overview of what we want them (the users) to come into contact with. 

Why should they care about our mission or message by telling them why it is vital to their lives now and later down the line?

• Company goals

This section will provide a high-level overview of your company's top business goals for its first years in operation.

• Market Analysis

In this section, you will need to analyze your target market thoroughly. It should include information on your customers, your competition, and the overall industry.

• Product or Service

In this section, you will need to describe your product or service. Be sure to include information on your pricing strategy and any unique features or benefits your product or service offers.

• Marketing and Sales Strategy

In this section, you will need to outline your marketing and sales strategy. It should include information on how you plan to generate leads and convert them into customers.

• Operational Plan

This section will need to provide an overview of your business operations. It should include your production process and distribution and fulfillment strategy.

This section will briefly describe what your company offers to customers.

• Target customer

To effectively reach the people we want as customers, you must provide a clear overview of who they are and how your product or service can benefit them. In this section, I'll go over some questions worth asking yourself when determining who your potential clients may be. 

• Best Practices

Write out your ideal practices for how you'll deal with qualified leads versus unqualified leads, how quickly you'll follow up with interested parties, your methods for helping a leader throughout the final steps of the sales process, and how you'll stay in touch with customers after papers have been signed.

• Financial Plan

In this section, you will need to provide detailed financial information for your business. It should include your income, balance, and cash flow statements. The following will include startup expenses, assets, liabilities, capital, break-even analysis, and loan repayment.

• Exit Strategy

This section will need to provide an overview of your exit strategy. It should include information on how you plan to sell or exit your business in the future.

Individual Agent Real Estate Business Plan

Real estate agents need a business plan like any other entrepreneur. A real estate business plan outlines your goals, strategies, and how you plan on achieving them. It is essential to have a business plan because it will help you stay focused and on track. Real estate is a competitive industry, so you need to be able to stand out from the rest.

A business plan will also be helpful if you ever need to seek funding for your business. Investors and lenders will want to see that you have a well-thought-out plan before they give you money. 

Creating a Real Estate Business Plan is essential if you want to build a successful career in real estate. With our easy-to-use template, you can get started today and be on your way to achieving your long-term goals.

There are many benefits to creating a Real Estate Business Plan, including:

• Clarifying your goals and strategies
• Mapping out a clear road map for your business
• Identifying potential obstacles and solutions
• Helping you stay organized and on track
• Increasing your chances of success

So, if you are considering starting a real estate business, sit down and write a business plan. It will be worth it in the long run!

Real Estate Team Business Plan

Before you start your real estate team, it's essential to have a business plan in place. It will help you define your goals, map your strategies, and track your progress over time. While there is no one-size-fits-all approach to creating a business plan, certain key elements should be included. Here are a few of the most important things to keep in mind:

• Your team's mission statement: What sets your team apart from the competition? Why do you exist?
• Your target market: Who are you trying to reach with your services? What needs do they have that you can address?
• Your marketing strategy: How will you get your target market and communicate the benefits of working with your team?
• Your financial goals: How much revenue do you hope to generate? What are your expenses? How will you fund your business?

By thoughtfully developing your real estate team business plan, you'll increase your chances of success in an increasingly competitive industry.

Real Estate Brokerage Business Plan

A real estate brokerage business plan is a document that outlines the goals, strategies, and financial projections of a real estate brokerage business . It should include an executive summary, market analysis, business model, operational plan, and financial plan. The executive summary should briefly describe the company, its target market, and its competitive advantages. The market analysis should assess the size and growth potential of the target market. 

The business model should describe how the real estate brokerage plans to generate revenue. The operational plan should outline the business's day-to-day operations, including staffing and marketing initiatives. Finally, the financial plan should provide detailed information on the anticipated costs and revenues of the company. A well-crafted real estate brokerage business plan can be valuable for attracting investors and achieving long-term success.

Remember that your business plan is a living document that should be updated as your company grows and evolves. Regularly reviewing and revising your business plan ensures that your real estate brokerage is always moving in the right direction.

Ready. Set. Plan

Whether you've got a ready-to-execute business plan or it's still being drafted, the most important thing is to start now — and fast.

At its core, a real estate business plan should outline the steps necessary to achieve specific goals, such as increasing sales or expanding into new markets. It should also identify potential obstacles preventing the business from achieving its objectives. By taking the time to create a comprehensive business plan, real estate businesses can increase their chances of weathering storms and coming out on top in the long run.

A business plan puts you on a clear track that makes your business 75% more likely to grow.

By following the above points, you'll be well on writing a comprehensive Real Estate Business Plan.

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Real Estate Business Plan Template

Download our template and create a business plan for your real estate business!

Updated September 22, 2023 Reviewed by Brooke Davis

A real estate business plan is as essential as a business plan for any new or existing business. This step-by-step guide will explain how to make a real estate business plan, provide a real estate business plan template for you to work with, and explain how and why each step is necessary for your business plan to be effective.

We also provide links to downloadable templates to help you create your real estate business plan and sample plans to show you the best ways to tailor your plan for any number of real estate business needs.

Whether you seek investors to grow your business or want to track your goals from year to year as your business develops, a carefully crafted plan will help you.

Why You Need a Business Plan for Your Real Estate Business

How to write a business plan for real estate, real estate business plan sample.

The real estate business plan fills several needs. It gives you an outline of your business goals and the direction you want your business to take. It keeps you in line with industry trends. It lets you monitor your annual performance and change your goals as the market changes.

An effective real estate business plan also acts as a financial summary of your business, showing how it stands about your competition and the industry. The business plan acts as a road map for you and a snapshot of your business for any investors or bankers who want to understand your business.

A real estate business plan will help you spot risks and weaknesses early in your business development and help you set realistic goals for your business.

These are known as SMART goals: Specific, Measurable, Achievable, Relevant, and Time-based goals.

Creating a business plan without goals is like starting a journey without a destination. Having a destination without a map means going down many blind alleys, taking unnecessary detours, and wasting time as you frequently need to return and start again.

Your business plan will help you avoid these pitfalls and adjust your course while you travel towards your final goal — a successful real estate business.

You must cover critical topics and include the correct information to ensure your business plan is as effective as possible. Follow our guide to writing a well-formed real estate business plan below.

1. Executive Summary

The executive summary contains an overall review of the rest of the business plan. It should include an outline of your history, your mission statement, and an overview of the rest of the report.

This section will include things like:

• Target clients with a fictional “ideal buyer” persona;
• Target neighborhoods, price ranges, and listings;
• Market overviews and potential threats and opportunities;
• A marketing plan outline.
• Your mission statement. This should include where and how your agency was founded, discuss the legal and financial structure, and stress your dedication to your customers and any special advantages you provide to your target clients.

2. Management Team

If you have a management team or a group that has contributed to the business’s success, summarize their names and contributions.

This section highlights everyone who has been involved in your business.

• Owners, founders, and original managers;
• New management, assigned duties and areas, and specific clients;
• Planned management expansion and anticipated managerial goals.
• Include all information about your managers, names, positions and duties, education and work history, past business successes, and other relevant details. Think of this section as your management team’s biography.

As the business expands, your management team section will be one section that needs constant improvement and updating.

3. Products and Services 

Your products and services should be phrased to make you unique in the industry and highlight how you stand out from your competitors. As a real estate business, what do you provide for your clients that others do not? How do your agents compare with your competition?

In real estate, your product is your listing and your brand. What is it that makes your company the one that your target buyer wants to use? In this section, you will highlight the following:

• Your niche market and how you acquire specific listings in your area;
• Your lead generation model and the way you obtain leads that differentiate you from your competitors;
• Your branding. A defining brand can be nebulous, and many firms resort to hiring a brand agent to help them customize and market their brand. You may be a family-friendly agent or specialize in the young professionals market. Determining how you present yourself is critical to your service profile.

4. Customers and Marketing

The customers and marketing section lets you identify your niche within the real estate business and how you intend to reach them.

You defined your ideal customer in your executive summary; now is where you expand on your perfect customer “persona.” A “persona” is the industry name for the imaginary person you sell to.

• Their demographics, age, gender, job, family preference, and income.
• Deal-breakers. What do they have to have in a home? What can they do without?
• Amenities, recreation, entertainment. Does your ideal buyer need dog parks nearby or bike paths? Do they want access to the water or the theater district?
• What type of neighborhood is your ideal buyer looking for? Do they need a school district or prefer to be far from children?

After establishing your ideal customer, you can select the viability of your marketing niche. For instance, is your buyer likely to be a first-time buyer? If so, what percentage of first-time sales were made in your chosen area in the last two years?

The more detailed you can make your Customers and Marketing section, the more you know how your business will likely thrive in your chosen area.

5. SWOT Analysis

Strengths, weaknesses, opportunities, and threats are necessary for every business analysis. In what areas are you and your business strongest, and where do you need improvement?

Investors appreciate a business owner who can accurately pinpoint their good and bad points and demonstrate how to improve.

This analysis should be fact-based, not opinion-based. You should be able to provide statistics and metrics for your and your competitors’ business research. Some things to consider are:

• In what areas of your business plan are you strongest? Are they similar or dissimilar to your nearest competitor’s strengths?
• In what areas are you weakest? Are you weak where your competitors are strongest?
• What opportunities can you exploit in the next six to 12 months? Are these opportunities unavailable to your competitors?
• What threats are you facing in the next year? How can you avoid these threats or turn them into advantages?

By analyzing your business objectively and reviewing all the facts and numbers, you can determine how you will be placed in the next year.

6. Financials 

The meat of your business plan is the financials. This includes your expenses, annual income forecast (sales, commissions, or other income), cash flow, and costs. As your business grows, your business plan will include previous years’ financials to track the growth.

Your financials should include, at a minimum:

• Expenses. These include operating expenses, whether you have a physical location or are still in the virtual stage of operations, licensing and permitting, fees and filing costs, and other operating expenses. If you have employees, it will also include payroll.
• The past income portion will track how much you have already made. You should be able to show how many leads you have generated, how many transactions you made, and your income from those efforts.
• Future income is how much you would like to make going forward. You can estimate how many leads are needed per transaction and how many transactions per sale from your past efforts.
• Goals. With this information, you should include your projections for the next year and five-year periods. Presumably, you wish to increase profit over the next five years. You can demonstrate how to achieve these goals using income tracking and market research.

7. Operations

Operations contain the moving parts of your financial projections. This section describes how you intend to reach your business goals in the upcoming year. This section might also include upcoming personnel changes, office expansions, etc.

Real Estate operations can include your projected hours of operation, your action plan for achieving your goals, and your marketing and advertising plan. Initially, this may be somewhat fluid if you do not plan to have set hours of operation or a brick-and-mortar office.

Later, as your business increases, this section will include business hours, open house times, etc.

8. Appendix

If your real estate business plan includes any ancillary documents, such as your Articles of Incorporation or a  Business Purchase Agreement , they would be included in the Appendix.

After your first real estate business plan, your previous years’ plans will go into the Appendix so they can be reviewed by potential investors or by your board. You can also include your quarterly statements and other financial documents.

Your Appendix is the section for any documents you want to have that are not essential for your readers’ overall understanding.

Now that you know what goes into your real estate business plan, all that is left for you to do is click on the business plan creation template and begin. Ensure you have all your documentation and research-ready in advance, and the template will provide you with cues as to what information needs to go into which spaces.

After filling in all the blanks, the template will generate a real estate business plan to your specifications.

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Free Real Estate Business Plan Template Download

Download this free real estate business plan template along with the action steps form to maximize plan implementation.

‘Tis the season to create your real estate business plan — and let this FREE downloadable template be your guide! In today’s video, I’ll walk you through how to create your 1-3-5 one-page business plan for your real estate business. I’ll also go over strategies to make your business plan work. To access your free download of the 1-3-5 one-page business plan as well as the action steps form, scroll down to the end of this blog post. Tune in to my video, below, for added insight and guidance.

VIDEO: Free Real Estate Business Plan Template Download

Business plans that work

Here are a few quick tips to consider as you craft your 1-3-5 single-page real estate business plan using our free templates below.

1. The 1-3-5- format is key — one big annual goal at the top, followed by three key focus areas that are broken into five objectives for each.

2. A single page document keeps your business plan streamlined and simple. Gone are the days of large, multi-page business plans that you know you’ll never read again. Keeping everything on one page forces you to focus on what matters and ensures that you will be able to read it again and again throughout the year to re-center yourself.

3. Be SMART. Make your goal , focus areas, and objectives SMART (Specific, Measurable, Achievable, Relevant, and Time-bound ).

4. Stretch but don’t strain. This goes along with making your goal, focus areas, and objectives SMART. You want to create goals that will stretch you, but you don’t want to stretch so much that you hurt yourself. A lofty goal that is well beyond reach can be very damaging.

5. Create action steps with due dates to help you prioritize. If there’s one supportive document we recommend to your business plan, its an action steps page. These action steps turn goals into actionable to-do items with concrete deadlines.

Download your FREE real estate business plan template

To download your free single-page real estate business plan template, click the image below! Create your big annual goal, your three key focus areas, and your five key objectives for each focus area.

Action steps to support your business plan

For your free download of the Action Steps fillable PDF form from the video above, click on the image below. These Action Steps will help you prioritize your to-dos that will help you achieve your five objectives from your real estate business plan template.

Need more help?

Maybe you are feeling behind, or overwhelmed, or like you need a little guidance to make a business plan that you know you’ll stick with. Take a look at our Business Planning course , which will walk you through the process step by step. And if you need more help in general, or if you need to create an implementation plan, hire an ICC coach today. It all starts with a completely free consultation call — reach out today!

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Brian Icenhower

Brian Icenhower is the CEO and Founder of Icenhower Coaching & Consulting (ICC), which provides customized coaching and training programs to many of the highest producing real estate agents, teams, and brokerage owners in North America. This progressive company also produces online courses, podcasts, training materials, white label training portals, speaking events, video modules, and real estate training books. ICC is one of the largest real estate coaching companies in the world with thousands of clients and a large team of the most accomplished coaches in the industry.

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Real Estate Business Plan Template [Updated 2024]

Real Estate Business Plan & Example

If you want to start a real estate business or expand your existing real estate business, you need a business plan.

The following real estate business plan template and example give you the key elements to include in a winning real estate business plan or a real estate agent business plan. In addition, a business plan template for real estate businesses lays out your goals, challenges, and plans for meeting your goals.

You can download our Real Estate Business Plan Template (including a full, customizable financial model) to your computer here.

Real Estate Business Plan Example

Below are links to each of the key sections of a sample real estate business plan (if you’d like a real estate investment business plan template , go here.)

• Executive Summary – The executive summary is the first section of your real estate business plan and should give a brief overview of your business plan. It should include your company’s mission statement, a brief description of your products or services, your target market, and how you plan to succeed.
• Company Overview – The company overview section of your business plan should include a brief description of your company, your legal structure, your business model, your products or services, and your mission statement.
• Industry Analysis – The industry analysis section of your business plan should give a brief overview of the real estate industry, including statistics on the size of the industry, growth trends, and major players.
• Customer Analysis – The customer analysis section of your business plan should give a brief overview of your target market, including statistics on the size of the market, growth trends, and major segments.
• Competitive Analysis – The competitive analysis section of your business plan should give a brief overview of your competitors, including their products or services, their market share, and their marketing efforts.
• Marketing Plan – The marketing plan section of your business plan should give a brief overview of your marketing strategies to generate leads, including your property listings and services, your pricing strategy, your distribution channels, and your marketing budget.
• Operations Plan – The operations plan section of your business plan should give a brief overview of your agency’s day-to-day operations, including your office procedures, your on-site procedures, and your customer service procedures.
• Management Team – The management team section of your business plan should give a brief overview of your team, including their experience, their qualifications, and their roles in your agency.
• Financial Plan – The financial plan section of your business plan should give a brief overview of your financial projections, including your income statement, balance sheet, and cash flow statement.

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Real Estate Business Plan Outline

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15+ Best Free Real Estate Spreadsheet Templates

• Tagged Collected Spreadsheet Templates Investing Real Estate Spreadsheets
• By Ansley Fender
• On September 30, 2021

Real estate is a common and potentially lucrative investment tool, especially given the recent increases in real estate prices.

However, investing in real estate requires extensive analysis to ensure you aren’t stuck with a massive financial headache.

Whether you’re investing in residential or commercial real estate, flipping homes, or buying a home for you and your family, here are 15 real estate spreadsheets to help you make prudent buying decisions and organize the finances of your current properties .

Most of these links contain direct downloads to spreadsheets in . XLSX or . XLS formats. They’re made for Excel, but can also easily be opened and edited in Google Sheets.

Residential and Commercial Real Estate Investing Spreadsheets

Rental Property Spreadsheet from the Tiller Community Gallery

The free Property Rental Manager template helps you track income and expenses for your rental properties by reporting the status of one or many properties on a monthly, quarterly, or annual basis.

Debt Service Coverage Ratio Calculator and Matrix

Direct Excel download from Resheets – Use this template to figure out your debt service coverage ratio, which is your ability to pay your real estate debt given your income from your properties. It’s especially useful when deciding whether or not to purchase a property.

Debt Service Coverage Ratio Calculator and Matrix (Excel)

Shared Multi-Family Property Worksheet

This template analyzes everything you could possibly want to know about your property for the life of the mortgage.

Shared Multi-Family Property Worksheet (Google Sheets and Excel)

Rental Cash Flow Analysis Template

With this spreadsheet, you can run multiple cash flow analyses for a single property simultaneously to determine the optimal rent to charge given your expenses. from Vertex42

Rental Cash Flow Analysis Template (Excel)

Cash Flow Spreadsheet

This cash flow spreadsheet helps you analyze the cash flow of multiple properties at a time.

• Cash Flow Spreadsheet (direct download)

Loan Payment Calculator

This simple spreadsheet calculates the interest you will pay over the life of your real estate property loans.

• Loan Payment Calculator (Excel)

Property Cash Flow Analyzer

This is another comprehensive spreadsheet that will help you assess the attractiveness of a property before you purchase and calculate the net income of a property you already own.

• Property Cash Flow Analyzer (Excel)

Rental Property Management Spreadsheet

This spreadsheet allows you to manage your income and expenses by month for each of your rental properties. It also has a helpful summary sheet that combines the data from each of your properties.

• Rental Property Management Spreadsheet (Excel)

Commercial Real Estate Valuation and Financial Feasibility Model

This detailed template estimates the value of a piece of commercial real estate and analyzes the investment over 10 years.

Commercial Real Estate Valuation and Financial Feasibility Model (Excel)

Spreadsheets for Real Estate Flipping

Residential Fix and Flip Deal Analyzer

If you purchase property to fix and resell, this spreadsheet will help you analyze profit scenarios based on rosy, conservative, and likely cost estimates.

• Residential Fix and Flip Deal Analyzer (Excel)

House Flipping Spreadsheet

This spreadsheet analyzes every aspect of house flipping from deciding on the optimum purchase price to estimating every aspect of your repairs.

• House Flipping Spreadsheet – (Excel)

Spreadsheets for Personal Real Estate Investing

Home Buying Comparison Checklist

This template focuses on primary dwellings, so if you’re looking to buy a home for you and your family, this spreadsheet will analyze every aspect of the homes you’re considering from the number of bedrooms to school districts to proximity to public transportation.

• Home Buying Comparison Checklist (Excel)

Home Ownership Expense Calculator

This helpful spreadsheet will determine how much home you can afford. It also has a mortgage loan amortization table so you can see your payments over the life of the mortgage.

Home Cost Calculator Template

This spreadsheet uses an estimate of your financial capacity to determine the true cost of owning a home.

• Home Cost Calculator Template (Google Sheet)

Buy a House or Rent Template

As the name suggests, this template determines whether you should buy or rent based on many different aspects of owning a home, such as tax deductions and estimated net proceeds from selling the home.

• Buy a House or Rent Template – (Google Docs)

Rent vs Buy Investment Spreadsheet

This rent vs. buy calculator projects the cost of renting and buying over 30 years.

• Rent vs. Buy Investment Spreadsheet (Excel)

Bonus: Investment Property Excel Model

This spreadsheet tracks the following metrics:

• Cap rate and cash yield
• Internal rate of return (IRR)
• Payback period (in number of years)
• Multiple on invested capital (MOIC)

Get it here ; note that you need to sign up with an email address.

Further Reading

• Also read: 7 Steps to the Ultimate Rental Property Spreadsheet

Ansley Fender

Business financial consultant, personal finance coach, tax preparer, mother, spreadsheet nerd.

These rent ‘vs’ buy comparisons are complete nonsense. These show dramatically optimistic investment returns on savings, ridiculously low long term rental increases, and property appreciation that’s below the inflation rate. That’s not historically accurate or likely in the future.

want a price sheet calaculator for a property

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10 Things Your Real Estate Business Plan Needs (FREE Template)

A real estate agent business plan is essential for success in today’s competitive market. It helps you set clear goals, define your vision, and outline the steps to achieve short-term and long-term objectives. As a real estate professional, having a well-crafted business plan can be the difference between being a top producer and struggling to make ends meet.

In your business plan, you’ll want to start by creating a vision statement that outlines the purpose of your real estate business and reflects your values. Setting firm goals will help you stay accountable and focused, allowing you to adapt to market changes or growth and remember that your business plan should be fluid and up-to-date to stay aligned with your ultimate objectives.

Your real estate agent business plan should be thorough, covering various aspects such as market analysis, organization structure, and marketing strategies. By having a comprehensive plan, you’ll be better equipped to navigate the challenges and seize the opportunities that come your way, ensuring your real estate business flourishes.

Understanding Your Target Market

Identifying your ideal client.

Understanding your target market is crucial to establish a successful real estate business plan. Begin by identifying your ideal client. Consider factors that may define your target clients, such as age, income level, family status, and property preferences. Reflect on your strengths as an agent and which clients you connect best with. This will help you focus your marketing efforts and create tailored strategies for your target audience.

Market Segmentation

Market segmentation divides your target market into smaller, more specific groups based on shared characteristics. In real estate, you can segment your market into categories such as:

• First-time homebuyers
• Empty nesters

By segmenting your market, you can tailor your services and communication strategies according to the unique needs of each group. This will lead to more effective marketing efforts and a better understanding of your potential clientele.

Analyzing Local Market Trends and Opportunities

Gather data on your local real estate market to identify trends and opportunities for your business. Analyze factors like:

• Market growth
• Market saturation
• Local property values
• Employment rates
• Infrastructure development
• Population demographics

By analyzing local market trends, you can identify areas with potential growth or areas that are becoming overly saturated. Use this information to adapt your services and expertise to market conditions, helping you stand out among competitors and position yourself as an expert in your niche.

Remember, a comprehensive understanding of your target market is essential for shaping your real estate agent business plan. By identifying your ideal clients, segmenting the market, and analyzing local market trends and opportunities, you’ll be better equipped to create tailored marketing strategies and make informed business decisions. This will ultimately contribute to the success and growth of your real estate business.

Lead Generation Strategies

Building an online presence.

To create a robust lead generation plan, build a strong online presence. A real estate agent must have a well-designed and user-friendly website to capture leads. Keep these factors in mind:

• Make sure your website reflects your branding and expertise
• Optimize your site for search engines to enhance its visibility in search results
• Include clear calls-to-action (CTAs), so potential clients can easily contact you
• Utilize high-quality images and videos to showcase properties
• Share helpful and informative content through a blog or resources section

You can also leverage social media channels to expand your reach and showcase your expertise in the industry. Focus on the platforms most relevant to your target audience and share valuable content related to real estate, local events, or home improvement tips.

Networking and Referrals

Building a strong professional network is essential for generating quality leads. Here are some strategies to boost your referral pipeline:

• Attend networking events, conferences, or workshops in your area. Engage with professionals in real estate or related industries
• Establish relationships with local businesses and community organizations
• Hold open houses or host educational seminars to engage potential clients in person
• Develop relationships with past clients and ensure you stay top of mind so they recommend you to their connections

Additionally, create a referral program that rewards clients and other referrers for sharing your services with their network. This will incentivize them to talk about you and help expand your reach.

Traditional Marketing Methods

Despite the increasing importance of digital marketing, traditional methods still have their place in generating leads for real estate agents:

• Send direct mail campaigns, like newsletters or postcards, to targeted neighborhoods, highlighting your strengths and successes
• Advertise in local print media, such as newspapers or specialized real estate publications
• List your services and properties in industry-specific directories, both online and offline
• Design and distribute eye-catching flyers, brochures, and business cards
• Participate in community events or sponsor local charities to enhance your company’s reputation and visibility

Make sure to keep track of the effectiveness of each lead generation method and evaluate their strengths and weaknesses. This will help refine and improve your overall marketing strategy and ensure you invest resources into the most productive channels.

Lead Conversion Techniques

Building rapport and trust.

To build rapport and trust, focus on the following:

• Be genuine and authentic with your prospects, showcasing your expertise and knowledge.
• Listen actively, taking the time to understand their concerns and needs.
• Display empathy towards their situation, offering tailored solutions for their specific problems.
• Stay engaged through the entire process, from the first interaction to closing.

Qualifying Leads

When it comes to qualifying leads:

• Ask open-ended questions to gauge their needs, timeline, and motivation for buying or selling
• Inquire about their financial situation and any potential barriers they may have
• Learn more about their preferred neighborhoods, housing type, and other preferences
• Prioritize leads based on their level of interest and readiness to move forward

Effective Communication and Follow-Up Strategies

For better communication and follow-up:

• Establish a consistent schedule for checking in on leads, such as every few days or weekly
• Personalize your communication, tailoring messages to each lead’s unique situation and preferences
• Practice active listening and respond thoughtfully to their questions or concerns
• Utilize several communication channels, including email, phone calls, text messages, and social media

Utilizing CRM Systems for Lead Management

Leveraging CRM systems can help you organize and optimize your lead management process:

• Track important lead information and interaction history in a centralized location
• Set reminders for follow-up tasks, appointments, or important milestones
• Analyze your leads’ behavior to understand their needs better and provide personalized service
• Create targeted marketing campaigns to engage your leads and nurture them toward conversion

By implementing these techniques and focusing on leads, marketing strategies, and communication, you’ll be well on your way to creating a thriving real estate agent business.

Closing Deals and Earning Commissions

Negotiation tactics.

When closing deals, it’s crucial to employ effective negotiation tactics to help both you and your client reach a favorable outcome. Some negotiation tactics include:

• Understanding the market: Know the local market trends and use this information when discussing price adjustments or concessions.
• Compromise: Find common ground and offer reasonable solutions to meet both parties’ needs.
• Leverage: Use your expertise in the real estate industry to highlight your client’s strengths and make convincing arguments.

Handling Objections and Overcoming Challenges

As a real estate agent, you’ll encounter objections and challenges in closing deals. To address them efficiently, consider the following points:

• Listen to the client’s concerns and empathize with their situation.
• Identify the objection: Determine the root cause of the objection and respond with a compelling solution.
• Maintain professionalism: Stay calm and composed, avoiding confrontational behavior.

Preparing and Presenting Offers

Presenting a well-prepared offer is vital to increasing the chances of closing a deal. Keep in mind:

• Research: Analyze comparable properties in the area to establish a competitive price for the offer.
• Documentation: Ensure that all necessary documents, such as pre-approval letters and proof of funds, are in order.
• Presentation: Employ clear and concise communication when presenting the offer, highlighting its benefits to the seller.

Managing the Transaction Process and Paperwork

Effectively managing the transaction process and paperwork helps keep the deal on track, which includes:

• Organization: Maintain an organized system for tracking important deadlines and required documents.
• Communication: Regularly update all parties involved in the transaction, ensuring they know the progress and address any concerns.
• Attention to detail: Ensure all forms, contracts, and other documents are accurate and complete.

By successfully closing deals, you’ll earn commissions based on your agreed split with your broker. For instance, if you close a deal worth $350,000 with a 6% commission rate, the gross commission income will be $21,000. If your commission split with your broker is 70/30, you’ll earn $14,700 while your broker receives $6,300. Utilizing the strategies discussed in this section will help you maximize your commission income and prove beneficial to your real estate business plan.

Client Retention and Building Repeat Business

Maintaining client relationships after closing.

Building lasting relationships with your clients is essential for repeat business and referrals. After closing a deal, continue to provide value by offering support with any post-closing issues, such as paperwork or maintenance concerns. Keep in touch with your clients and remember important milestones, such as anniversaries or birthdays. Show appreciation for their trust in you by sending thoughtful gifts or cards or simply checking in periodically.

Asking for Referrals and Testimonials

Word-of-mouth marketing is an incredibly powerful tool in the real estate industry. Encourage your satisfied clients to share their positive experiences with friends and family. To achieve this, be proactive in asking for testimonials and reviews, which you can later showcase on your website, social media, and other marketing materials. Here are some strategies to obtain them:

• Reach out via email or phone, and kindly request a testimonial or referral
• Provide a simple template to make it easy for clients to write a review
• Offer incentives, such as discounts on future services or gift cards, to show gratitude for their time and effort

Staying Top-of-Mind Through Regular Communication and Updates

Establish regular communication with your past clients to stay top-of-mind and generate repeat business. Keep them informed about the latest market trends, neighborhood developments, or listings that interest them. Here are some communication tactics you can employ:

• Send personalized monthly or quarterly e-newsletters
• Share relevant content, such as articles or videos, on your social media platforms
• Organize events, like client appreciation parties or educational seminars, to maintain connections and foster new ones

Maintaining client relationships, requesting referrals, and staying top-of-mind through regular updates will strengthen your real estate business with repeat clients and new prospects. Remember, satisfied customers are the key to long-term success in the real estate industry.

Measuring Success and Adjusting Your Strategies

Setting goals and key performance indicators (kpis).

To measure the success of your real estate agent business plan, start by setting SMART goals (Specific, Measurable, Achievable, Relevant, and Time-bound). These can serve as benchmarks for success and provide direction on areas to focus your efforts. Consider setting goals for various aspects of your business, such as sales volume, new client acquisition, and customer satisfaction.

In addition to your goals, establish key performance indicators (KPIs) to track your progress. KPIs are quantifiable metrics that help you evaluate the effectiveness of your strategies. Examples of KPIs for a real estate agent business plan include:

• Number of new leads generated per month
• The conversion rate of leads to clients
• Average days on market for properties
• Percentage of listings sold

Tracking and Analyzing Results

With your goals and KPIs established, continually collect and analyze data to track your progress. Regularly monitoring your results allows you to identify trends, spot potential problems, and evaluate the effectiveness of your marketing efforts. Some methods to track your data include:

• Using a CRM system to manage client relationships and interactions
• Employing analytics tools to evaluate the success of digital marketing campaigns
• Conducting a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to identify areas where you excel or need improvement

Pay close attention to competitor performance and market trends to better understand how your strategies compare and identify any gaps you may need to address.

Adapting and Optimizing Your Strategies Based on Data

Once you’ve gathered and analyzed your data, use insights to adapt and optimize your strategies. Make data-driven decisions to improve your marketing efforts, streamline processes, and better allocate resources. Some steps you can take include:

• Adjusting your marketing budget and tactics based on your marketing ROI
• Revisiting your goals and KPIs to ensure they still align with your overall business objectives
• Fine-tuning your pricing strategies or the type of properties you focus on to meet market demand better

Maintaining a proactive approach to adjusting your strategies will keep your business plan agile and responsive to the changing real estate market. This will go a long way in helping you achieve the success you envision for your real estate agent business.

Time Management and Organization

Prioritizing tasks and setting a daily schedule.

In your real estate agent business plan, it’s crucial to have a time management and organization strategy. Start by prioritizing tasks that align with your [business goals]. Break down tasks into daily, weekly, and monthly goals. Then, create a daily schedule following the block scheduling method:

• List your key tasks for the day.
• Assign specific time blocks for each task.
• Stick to the schedule and avoid multitasking.

You’ll notice increased productivity and improved time management with this approach.

Using Productivity Tools and Apps

Take advantage of productivity tools and apps to help you stay organized and manage your time efficiently. Some popular tools for real estate agents include:

• Calendars: Apps like Google Calendar or Outlook can help schedule appointments and manage deadlines.
• Task Managers: Utilize tools like Trello, Asana, or Todoist to manage your projects and collaborate with your team.
• Time Tracking: Apps such as Toggl or Harvest provide insights into your work habits, helping you identify areas for improvement.

Remember to limit the number of tools you use to avoid digital clutter and duplicate information.

Delegating and Outsourcing Tasks When Necessary

As a real estate agent, delegating and outsourcing non-core tasks is essential to focus on your primary responsibilities. Here are some tasks you can consider delegating:

Identify areas where your expertise may not be as strong or where your time can be better spent, and consider outsourcing those tasks to professionals. This approach will help you manage your workload and improve the quality of your services.

Ongoing Education and Professional Development

Staying up-to-date with industry trends and changes.

To stay competitive in the real estate market, you must keep up with industry trends and changes. By monitoring resources like the National Association of Realtors (NAR), California Association of Realtors (CAR), and multiple listing services (MLS), you can stay informed about the latest developments in your field. Set aside time to read industry publications, attend webinars, listen to podcasts, and follow industry-leading professionals on social media.

Pursuing Relevant Certifications and Designations

Continuing education is crucial for staying current in the fast-paced real estate industry. Pursue relevant certifications and designations to add credibility and value to your practice. Organizations like NAR and CAR offer various designations demonstrating your expertise and commitment to professionalism to clients and colleagues.

Examples of real estate certifications and designations include:

• Accredited Buyer’s Representative (ABR)
• Certified Residential Specialist (CRS)
• Green Designation (Green)
• Seniors Real Estate Specialist (SRES)

To obtain these certifications, you must complete specific coursework, pass exams, and maintain membership in the relevant organizations.

Participating in Networking and Learning Events

Engaging in networking and learning events within the real estate community can help you build relationships, share ideas, and learn from the experiences of others. Attend conferences, workshops, and local meetups relevant to your niche, region, or areas of interest. Not only will this enhance your industry knowledge and skills, but it can also be an opportunity to form valuable connections that will benefit your business growth.

In summary, staying up-to-date with industry trends, pursuing certifications and designations, and participating in networking events can help you maintain and develop your skills as a real estate professional. Committing to continuous learning and professional development is essential to ensure your long-term success in the real estate business.

A well-structured business plan is essential for success as a new real estate agent. With a solid plan, you can set your goals, identify your target market, and analyze your competition. A comprehensive business plan lets you plan your marketing strategies, map your operating expenses, and create revenue projections.

To get started, consider using a business plan template tailored to real estate agents’ needs. This will give you a framework to follow as you develop your plan.

Developing a business plan is just the first step in the process. You need to take action and implement your strategies to realize your goals and achieve success. Revise your plan regularly, adapting and updating it as needed. This will ensure you stay on track with your goals and remain competitive in the ever-changing real estate market.

As a new real estate agent, taking bold steps toward your objectives may feel intimidating. However, trust your plan, apply your outlined strategies, and stay persistent. Your dedication will pay off in the long run.

Starting a career in real estate can be challenging, but you don’t have to face the journey alone. There are numerous resources and support networks available to help new real estate agents excel:

• Professional networks : Join local real estate associations and online forums to connect with experienced agents, ask questions, and expand your knowledge.
• Mentors : Seek accomplished real estate agents who can offer guidance, share valuable experiences, and provide personalized advice.
• Training and education : Keep your skills fresh by attending workshops, participating in webinars, and pursuing continuing education courses relevant to your field.

By leveraging these resources and committing to your business plan, you are setting yourself up for a successful career in real estate. Don’t forget to celebrate your achievements along the way and take pride in your progress. Now is the time to take action; you will surely achieve your goals with determination and hard work.

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7 Free Excel Templates to Help Realtors Get Business in Order

Andrew Childress

Realtors are asked to do an impossible number of tasks: marketing, sales, negotiation, and even accounting. You need tools at your disposal to guide you through each of these roles, even if they aren’t your forte. 

Our Excel templates for realtors are designed to do that. You’ll get helpful cues that remind you what to record, track, and analyze.

A spreadsheet’s rows and columns give you the structure to capture every detail about your clients, your properties, or your investments. Instead of leaving these details to memory, use a spreadsheet as the brain for your real estate business.

In this post, we’re sharing 7 Excel templates realtors are sure to benefit from! Whether you’re using a spreadsheet to track leads, calculate a profitable investment, or run a property, we’ve got you covered.

• Real Estate Commissions Tracker
• Mortgage Calculator
• Open House Notes Tracker
• Home Upkeep and Maintenance Expense Projection
• Rental Profitability Calculator
• Real Estate Lead Spreadsheet
• Rental Property Tracker

1. Real Estate Commissions Tracker

Cash flow is the lifeblood of your business. And of course, every real estate agent lives and dies by the commission on properties sold. You need a tool that helps you monitor your commissions and potential commissions so that you know how much income to expect.

This spreadsheet is perfect for the job. Each row in the inputs section corresponds to a property you’ve sold. You can input your commission percentage and any potential deductions for expenses. Best of all, you can even track which commissions you’re still owed so that nothing slips through the cracks.

Download the Real Estate Commission Tracker for Excel

2. Mortgage Calculator

Interest rates are changing rapidly . That means that buyers need help understanding their options. And while you might not be the mortgage broker, you can still offer helpful ballpark estimates.

Excel templates for realtors like this one enhance your advisory skills. Picture this: with a few basic, standard inputs, you can give a buyer a range on their monthly payment. If you stay up-to-date with market interest rates, you can easily quote an estimated payment thanks to this spreadsheet.

‍ Download the Mortgage Calculator for Excel

3. Open House Notes Tracker

Running an open house is more difficult than it seems! You’ve got active traffic from interested buyers, and each one might just be your next customer. The hard part is keeping track of all the details. 

In this case, you can use our Excel templates for realtors to log each visitor, their interest in the home, and how to follow up with them. Capture these details, then use the spreadsheet to plan your follow-up. Bonus tip: share your contact details using Blinq, a digital business card for realtors , for an even better chance of reconnecting.

Download the Open House Notes Tracker Excel Template

4. Home Upkeep and Maintenance Expense Projection

Don’t want to be surprised by unexpected expenses? Well, then you need a forecast. Home maintenance is a certainty, so it makes good sense to forecast it.

With this easy-to-use spreadsheet, you can forecast your expenses according to how often it needs to be performed. Then, input your planned costs. The result is an easy-to-review maintenance forecast that you can drop into your household budget.

Download the Home Upkeep and Maintenance Expense Projection Excel Template

5. Rental Profitability Calculator

Pondering your first real estate investment? We all daydream of easy, passive income. The problem is that real estate rentals are more complex than you might imagine.

This spreadsheet helps you navigate the uncertainty and ensure that your investment is a good one. It features helpful reminders for expenses you might forget, like vacancy rate and annual tax expenses. Input each of these, and you’re on your way to a clear view of cash flow.

Download the Rental Profitability Calculator for Excel

6. Real Estate Lead Spreadsheet

You’re constantly meeting new people. That means that you have plenty of contacts and details to keep up with. And while you could simply save them to your phone or email, you’ll miss many of the most important details.

It pays to use this Real Estate Lead Spreadsheet. Spreadsheets are the perfect way to record details on your buyers. In turn, that helps you visualize your sales pipeline. You could even pair this sheet with file sharing tools for realtors to remind you when contracts have been sent.

Download the Real Estate Lead Excel Spreadsheet Template

7. Rental Property Tracker

So, you’ve bought a rental property. How do you actually know it’s performing up to your expectations?

The answer is you need to log all info, then analyze the performance. This can help you make changes in how you operate. Use one tab to log all of your income and expenses, then review a summary with an easy-to-navigate analysis table.

Excel templates for realtors like this one also save you time during tax season. With tracking accurate property financials, your CPA is sure to thank you.

Download the Rental Property Tracker Template for Excel

You Can Excel In Your Real Estate Business

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Free Business Plan Templates in Excel

By Joe Weller | September 27, 2020

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In this article, we’ve rounded up an extensive list of free business plan templates and samples for organizations of all sizes. You can download all of the plans in Excel. 

Included on this page, you’ll find business plan templates in Excel , business plan checklists in Excel , business plan financial templates in Excel , and more.

Business Plan Templates in Excel

These Excel business plan templates are designed to guide you through each step of a well-rounded strategy that supports your marketing, sales, financial, and operational goals.

Business Plan Template in Excel

This Excel business plan template has all the traditional components of a standard business plan, with each section divided into tabs. This template includes space to provide the executive summary, target audience characteristics, product or service offering details, marketing strategies, and more. The plan also offers built-in formulas to complete calculations for sales forecasting, financial statements, and key business ratios.

Download Business Plan Template

Excel | Smartsheet

One-Page Business Plan in Excel

To check the feasibility of your business concept, use this single-page business plan template. The template allows you to jot down the core details related to your idea. This template also includes room for you to provide concise information about what you do, how you do it, why you do it, who your idea serves, your competitive advantage, your marketing strategies, and your success factors. At the bottom of this one-page plan, you’ll find a table to conduct a SWOT (strengths, weaknesses, opportunities, and threats) analysis. Find more downloadable single-page plans and examples at “ One-Page Business Plan Templates with a Quick How-To Guide .”

Download One-Page Business Plan

Excel | Word | PDF | Smartsheet

Sample 30-60-90-Day Business Plan for Startup in Excel

This 90-day business plan is designed for startup companies to develop a 90-day action plan. This template gives you room to outline the following: main goals and deliverables for each 30-day increment; key business activities; task ownership; and deadlines. This template also includes a built-in Gantt chart that adjusts as you enter dates. Visit “ 30-60-90-Day Business Plan Templates and Samples ” to download more free plans.

Download 30-60-90-Day Business Plan for Startup

For more free business plans in a wider variety of formats, visit “ Simple Business Plan Templates .”

Business Plan Checklists in Excel

These business plan checklists are useful for freelancers, entrepreneurs, and business owners who want to organize and track the progress of key business activities.

Business Planning Checklist with Timeline in Excel

Use this checklist to keep your business planning efforts on track. This template enables you to add tasks according to each phase of your plan, assign an owner to each task, and enter the respective start and end dates. The checklist also enables you to create and color-code a visual timeline when you highlight the start and end dates for each task.

Download Business Planning Checklist with Timeline Template

Business Plan Checklist with SWOT Analysis in Excel

Use this business plan checklist to develop and organize your strategic plan. Add the name of the business activity, along with its status, due date, and pertinent notes. This template also includes a separate tab with a SWOT analysis matrix, so you can evaluate and prioritize your company’s strengths, weaknesses, opportunities, and threats.

Download Business Plan Checklist with SWOT Analysis - Excel

Business Startup Checklist in Excel

This checklist template is ideal for startup organizations. It allows you to list and categorize key tasks that you need to complete, including items related to research, strategic relationships, finance, development, and more. Check off each task upon completion to ensure you haven’t missed or overlooked any important business activities. Find additional resources by visiting “ Free Startup Plan, Budget & Cost Templates .”

‌Download Business Startup Checklist Template

Business Plan Financial Templates in Excel

Use these customizable templates to develop your organization’s financial plan.

Business Startup Costs Template in Excel

Use this template to estimate and track your startup and operational costs. This template gives you room to list line items for both funding and expenses; you can automatically calculate totals using the built-in formulas. To avoid overspending, compare budgeted amounts against actual amounts to determine where you can cut costs or find additional funding.

Download Business Startup Costs Template

Small-Business Budget Template in Excel

This simple business budget template is designed with small businesses in mind. The template helps you track the income and expenses that you accrue on a monthly and yearly basis. To log your cash balances and transactions for a given time frame, use the tab for cash flow recording.

Download Small-Business Budget Template - Excel

Startup Financial Statement Projections Template

This financial statement projections template includes a detailed profit and loss statement (or income statement), a balance sheet with business ratios, and a cash flow statement to analyze your company’s current and future financial position. This template also comes with built-in formulas, so you can calculate totals as you enter values and customize your statement to fit the needs of your business.

‌ Download Startup Financial Statement Projections Template

For additional templates to help you produce a sound financial plan, visit “ Free Financial Templates for a Business Plan .”

Business Plan Marketing and Sales Templates in Excel

Use these downloadable templates to support and reinforce the marketing and sales objectives in your business plan.

Sales Forecast Template in Excel

This sales forecast template allows you to view the projected sales of your products or services at both individual and combined levels over a 12-month period. You can organize this template by department, product group, customer type, and other helpful categories. The template has built-in formulas to calculate monthly and yearly sales totals. For additional resources to project sales, visit “ Free Sales Forecasting Templates .”

Download Sales Forecast Template

Marketing Budget Plan in Excel

This marketing budget plan template helps you organize and plan your campaign costs for key marketing activities, such as market research, advertising, content marketing , and public relations. Enter the projected quantity and cost under each campaign category; the built-in formulas enable you to calculate projected subtotals automatically. This template also includes a graph that auto-populates as you enter values, so you can see where your marketing dollars are going.

Download Marketing Budget Plan Template

Other Business Plans in Excel

Use these business plan templates to conduct analyses and develop a plan of action that aligns your strategy with your main business objectives.

Business Action Plan Template in Excel

Use this basic action plan template to develop a roadmap for reaching your goals. Add a description of each action item, assign the responsible party, and list the required resources, potential hazards, key dates, and desired outcome. You can use this template to develop an action plan for marketing, sales, program development, and more. 

Download Business Action Plan Template

Business Plan Rubric in Excel

Once you complete your business plan, use this rubric template to score each section to ensure you include all the essential information. You can customize this rubric to fit the needs of your organization and provide insight into the areas of your plan where you want to delve more deeply or remove unnecessary details. By following these steps, you can make certain that your final business plan is clear, concise, and thorough.

Download Simple Business Plan Rubric

Competitive Analysis Template in Excel

This template enables you to analyze the competitive landscape and industry for your business. By providing details related to your company and competitors, you can assess and compare all key areas, including the target market, marketing strategies, product or service offerings, distribution channels, and more.

Download Competitive Analysis Template

Excel  | Smartsheet

For additional free templates for all aspects of your business, visit “ Free Business Templates for Organizations of All Sizes .”

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Real Estate Template in Excel

Need A Template To Use For A Real Estate Bookkeeping Spreadsheet, Cash Flow, Accounting Balance Sheet Or In Tracking The Expenses? Template.Net Has A Wide Variety Of Free And Editable Templates. You Can Edit It In Microsoft Excel. We Have A Lot Of Designs. Visit Our Website And Download Now!

• Real Estate Home
• Real Estate HR
• Real Estate Property Management
• Real Estate Sales & Marketing
• Real Estate Finance & Investment
• Real Estate Legal Compliance & Regulation
• Real Estate Development & Construction
• Real Estate Sustainability & Environmental Practices
• Real Estate Design

If you’re wondering about investing in real estate you must know that this type of investment is no easy feat. It’s not as simple as owning a property. Like any other business, it requires you to log countless hours of research and craft a detailed business plan before starting out. Regardless if you’re a home buyer or seller, you would require the guidance of a real estate agent. 

Real estate agents are in constant search of new property buyers or sellers of residential, commercial, and industrial properties, among others, that they can represent. Beyond organizing open houses, real estate agents document the transaction that happens between the house seller and the buyer. After they close the deal, they usually send invoice letters for their fees. 

Template.net has several templates for the real estate business and for agents. You can create invoices and receipts with our ready-made and customizable Real Estate Excel Templates. These samples are available for download and compatible with your devices so you don’t need to create documents from the start. You can personalize these templates by adding your logo and changing the design and layout in the spreadsheet. 

Aside from invoices and receipts, we also have financial model templates for real estate so you can easily conduct valuation for your clients. These templates are perfect not only for realtors, but also for property buyers, developers, and other users that are into real estate. 

What are you waiting for? Download these real estate spreadsheet templates now to help you plan, manage, and maximize your real estate investment.

Frequently Asked Questions

What are the benefits of using ready-made templates in the real estate business.

• The users of ready-made templates are able to produce documents like budgets, receipts, and invoices without creating from scratch. These documents are important for business transactions.
• You can allocate more of your time and effort to other necessary tasks for your business.
• The templates are accessible from anywhere that has an internet connection.
• You don't need to use specific applications to edit the templates' contents due to them being browser-based.

What are invoices?

• Invoices are documentation of an item a customer wants to buy and its price. It is handed to the customer to inform them of the price of the item they are ordering.
• Invoices are also a way to protect the buyer and the seller because they can serve as a record of the transaction between the two.

What do you use to make invoices?

Invoices have a simple layout. Office applications like Microsoft Word, Excel, Google Docs, or Google Slides can be used to create invoices.

How do you make blank real estate invoices?

• Design the layout of the invoice.
• Choose a suitable computer application to use for creating the blank invoice.
• To personalize the invoice, put your company's logo and branding elements.
• Add your company name, address, and contact number(s)
• Add spaces for the name and contact details of potential buyers.
• Create a table for the items and their quantity and prices.
• Label the table's columns.

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The Real Estate Pro-Forma: Full Guide, Excel Template, Explanations, and More

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Effective Gross Income (EGI)

Real estate & property taxes, cash flow to equity investors.

If you want to understand a company, look at its financial statements – and if you want to understand a property, look at its pro-forma.

Many websites and textbooks describe the real estate pro-forma as a “cash flow projection” for a property.

While that description is accurate, it’s more useful to think of the pro-forma as a combined and simplified Income Statement and Cash Flow Statement – for a property rather than a company.

We’ll discuss the main line items on the real estate pro-forma in this article and give you an Excel template, but let’s start at the beginning with the “why.”

Why is it possible to simplify the financial statements of a property and use just a single schedule rather than a full Income Statement, Balance Sheet, and Cash Flow Statement?

Simplification 101: Why the Real Estate Pro-Forma?

It’s easiest to answer this question by pointing out that it’s possible to do the same thing for companies.

For example, in a DCF , LBO, or merger model, you could skip the full 3-statement projections and do the following instead:

• Project the company’s revenue, expenses, and taxes on its Income Statement.
• Then, create a “mini-Cash Flow Statement” and include only the key, recurring line items, such as Depreciation, the Change in Working Capital, and CapEx.

You don’t need a Balance Sheet because you can track Cash, Debt, and Equity separately below these projections, and you can estimate the Change in Working Capital with a simple percentage.

And you don’t need a full Cash Flow Statement because many of the items on it are non-recurring and, therefore, do not factor into the projections.

Properties are much simpler than large companies, so if it’s feasible to simplify the financial statements like this for companies, it’s even more feasible to simplify them for properties.

It’s also simpler because Working Capital tends to be less important for properties, and you effectively use Cash Accounting rather than Accrual Accounting in the analysis.

Also, you usually ignore income taxes because properties tend to be owned by pass-through entities such as Partnerships, S Corporations, and REITs that do not pay corporate income taxes.

Finally, “other activities” on companies’ Cash Flow Statements are often minimal for properties, and Debt and Equity Issuances and Debt Service can be handled directly on the pro-forma.

To be clear: properties still have full financial statements.

It’s just that for financial modeling, valuation, and investment analysis, you almost always skip the full statements and focus on the pro-forma instead.

The Real Estate Pro-Forma Excel and Guide

Below, we’ll walk through a pro-forma for an office/retail property with 3 tenants on different lease types (Full Service, Single Net, and Triple Net):

• Pro-Forma – Office/Retail Property (XL)

This is a simplified pro-forma for a “ core real estate deal ” intended to illustrate the concepts. We cover more complex examples and cases in our full Real Estate Financial Modeling course .

Here’s the high-level view ( click the image to see a larger version ):

Real Estate Pro-Forma: Revenue Line Items

You always start the pro-forma by showing the “potential” revenue of a property if it were 100% occupied and all tenants paid market rates.

Then, you make deductions and adjustments because:

• Properties are rarely 100% occupied, and you do not earn rent from vacant space.
• Not all tenants pay market rates; some might be paying lower rates, and some might be paying higher rates.
• If a tenant’s lease expires and that tenant chooses not to renew it, it will take time to find a new tenant. You will not earn rent in that downtime period.
• When a new tenant moves in, you may give it “free rent” for a few months as an incentive to agree to a multi-year lease.
• You might also earn income from “expense reimbursements,” i.e., the portion of operating expenses that a tenant is responsible for paying.

Each line item in the Revenue section corresponds to one or more of these points:

Base Rental Income

This one represents the “Potential” Rental Income of the property if it were 100% occupied and all tenants paid market rent.

Simple Calculation: If the property has 10,000 rentable square feet and the market rate is $50 per square foot per year, the Base Rental Income is $500,000.

Absorption & Turnover Vacancy

This represents the foregone rental income when a tenant leaves and it takes several months to find a new tenant.

It’s not a cash expense, but rather a loss of potential revenue.

Simple Calculation: If a tenant is renting 2,000 square feet for $50 per square foot per year, this tenant leaves, and it takes 6 months to find a new tenant, then the Absorption & Turnover Vacancy is 2,000 * $50 * (6 / 12) = $50,000.

Concessions & Free Rent

This line item corresponds to the “free rent” incentive described above.

Simple Calculation: If a new tenant moves into a 2,000-square-foot space with rent of $50 per square foot per year and receives 3 rent-free months, the “Concessions & Free Rent” line item will be 2,000 * $50 * (3 / 12) = $25,000.

Expense Reimbursements

This item represents the amount of property taxes, insurance, and maintenance/utilities for which the tenants are responsible.

The expenses that each tenant must pay are specified in its lease, and the terms tend to vary quite a bit.

Simple Calculation: If a tenant renting 2,000 square feet is responsible only for its share of property taxes, and property taxes for the entire 10,000-rentable-square-foot building are $50,000 per year, then this tenant must pay (2,000 / 10,000) * $50,000 = $10,000.

Potential Gross Revenue

If you sum up everything above, you’ll calculate the Potential Gross Revenue or Potential Gross Income for the property.

This number represents the income from all space in the building, ignoring permanently vacant spaces and non-rent sources.

General Vacancy

This line item represents Potential Rental Income lost to spaces that are permanently vacant.

“Permanently vacant” means there is no tenant in the space currently, and the owner has no near-term plans to find a tenant for that space.

Simple Calculation: If this same 10,000-rentable-square-foot building has 1,000 square feet that is always empty, the General Vacancy line item would be 10,000 * 10% * $50 = $50,000.

It would appear with a negative sign on the pro-forma since it represents a deduction.

This is similar to “Net Sales” or “Net Revenue” for a normal company, but it’s on a cash basis .

EGI represents the cash revenue that a property generates after the adjustments for temporary and permanent vacancy and free months of rent.

It might also include adjustments for above or below-market leases, percentage rent for retail tenants, and other items.

REIT Modeling

Master financial modeling for real estate investment trusts with 6 global case studies based on REIT 3-statement models, valuations, M&A deals, and leveraged buyouts.

Real Estate Pro-Forma – Property Expenses

That takes us to the end of the Revenue section, which ends with Effective Gross Income.

Most of the property’s expenses are easier to explain:

Property Management Fees

Property owners rarely manage their properties directly.

Instead, they hire 3rd party management companies to deal with tenants, collect rent, resolve problems, and set up repairs and maintenance . The fees paid to these management companies are usually a percentage of EGI.

Simple Calculation: If the management fees are 3% of EGI and EGI is $1 million, then these fees are $30,000.

Operating Expenses

These include insurance, maintenance and repairs, utilities, and other miscellaneous items.

If the property is big enough, this category might also include staff payroll, sales & marketing, janitorial, landscaping, and security services. These expenses are usually based on per-square-foot or per-square-meter amounts.

Simple Calculation: If the Operating Expenses are $10.00 per Rentable Square Foot per Year and there are 50,000 rentable square feet, then the annual Operating Expenses are $500,000.

Nearly all local governments charge a tax on properties to fund school systems, police, and infrastructure.

Often, this tax is a small percentage (1-4%) of the property’s assessed value, and it increases each year as the assessed value goes up.

In places like Australia and the U.K., there’s also a “Stamp Duty” on property sales, which may exist along with or in place of annual property taxes.

Simple Calculation: A property’s most recent assessed value was $20 million. The state and city charge property taxes for a total of 3% of the property’s value, so the taxes here are $600K.

Capital Costs on the Real Estate Pro-Forma: Capital Expenditures, Tenant Improvements, and Leasing Commissions

“Capital costs” refer to spending on items that will provide a benefit for many years to come.

The main categories are Capital Expenditures , Tenant Improvements , and Leasing Commissions.

In the simple real estate pro-forma above, we group these items into a single line (“CapEx, TIs, and LCs”), but we calculate them separately and show them on separate lines in more complex models.

Capital Expenditures (CapEx) represent spending on items that are not specific to individual tenants. For example, CapEx might include spending on a new roof, elevator, or on the air conditioning or heating system in the building.

CapEx may vary greatly from year to year, depending on the property’s age and condition.

Simple Calculation: If CapEx per Gross Square Foot is $5 and there are 50,000 Gross Square Feet in the property, CapEx is $250K.

Tenant Improvements (TIs) represent spending on items that are specific to individual tenants. Owners often pay for these items to customize the space and make it easier for tenants to move in. Examples might include additional walls and doors in an office suite.

Simple Calculation: If the TIs per Rentable Square Foot for a tenant are $50 and the tenant is renting 10,000 square feet, the TIs will be $500,000 upon initial move-in.

Those TIs will not recur each year – only when a tenant renews a lease, or a new lease begins.

Leasing Commissions (LCs) are payments made to commercial real estate brokerage and leasing companies to find new tenants and to get existing tenants to renew their leases (as some negotiation may be required).

LCs are almost always based on a percentage of the total lease value over the term of the lease.

Simple Calculation: A tenant signs a 5-year lease for 10,000 square feet that initially starts at $50 per rentable square foot and then increases to $52, $54, $56, and $58 over the term.

The Leasing Commissions will be 5% of the total lease value over these 5 years.

Therefore, the LCs will be 5% * ($50 + $52 + $54 + $56 + $58) * 10,000 = $135,000.

As with TIs, LCs are incurred only when a new tenant moves in, or an existing one renews.

NOTE: We simplified this calculation in the Excel example here and didn’t account for lease escalations, but in a more complex version, we would.

CapEx, TI, and LC Reserves (AKA “Replacement Reserves” or “Capital Reserves”)

From the descriptions above, you can immediately detect one big issue with these capital costs: they’re often lumpy.

A property might have $200K in capital costs one year, then $0 the next year, then $800K, then $300K, and then $200K.

This pattern makes the property’s cash flows fluctuate significantly, and it makes it difficult for owners to plan their long-term strategy.

So, nearly all properties use “Reserves” that aim to smooth out these fluctuations.

In the example directly above, the owners might estimate $1.5 million in capital costs over 5 years.

Based on that, they might then allocate $300K per year into these Reserves.

When capital costs are owed, the owners draw on the Reserves to pay for them.

If the Reserves cannot cover everything in one year, the remaining required funding will come out of the property’s cash flow for that year.

Here’s how it works over the first 3 years in the example above:

• Year 1: Allocate $300K; spend $200K; Ending Reserves of $100K.
• Year 2: Allocate $300K; spend $0; Ending Reserves of $400K.
• Year 3: Allocate $300K; spend $800K (with $100K funded from cash flows since the Reserves are only up to $700K); Ending Reserves of $0.

There is significant disagreement over where the Reserve Allocations should be shown.

Some people argue that they should not affect the property’s Net Operating Income (see below) because they are not true “cash costs” when they are allocated.

Therefore, this group argues, the Reserves should be deducted after the NOI line item.

Other people argue that you must deduct the Reserve Allocations before the NOI line item to reflect the true cost of owning the property.

We agree more with the second line of reasoning, so in this article and the case studies in our Real Estate Course , we assume that the Reserve Allocations reduce NOI.

Net Operating Income (NOI)

This item is similar to EBITDA for normal companies – a capital structure-neutral measure of core-business cash flow – but it’s not the same.

For example, if you deduct the Reserve Allocations, as we do, then NOI partially reflects capital costs.

EBITDA, by contrast, never reflects capital costs because it excludes CapEx and D&A.

NOI is critical because properties are often valued based on their projected NOI divided by a selected “Capitalization Rate” (Cap Rate) or “Yield.”

For example, if a property’s projected NOI is $5 million and Cap Rates for similar properties in the area are 5%, this property might be worth $5 million / 5% = $100 million.

If your NOI figures are off, then your valuation will be off as well.

Capital Costs Paid from Reserves

This line item represents the capital costs that are covered by the Reserves in a given year.

If the Reserves are insufficient, this amount will not completely offset the capital costs – and that will reduce the property’s cash flow:

Adjusted Net Operating Income (Adjusted NOI)

This is the item shown above: the property’s NOI minus the capital costs not covered by the Reserves.

Even if you disagree with our treatment of the Reserves in NOI, you’d still have to deduct the Reserve Allocations in this section – so Adjusted NOI ends up being the same.

Adjusted NOI is similar to Unlevered Free Cash Flow for normal companies because it represents the cash flow generated by core-business operations after capital costs and re-investment, ignoring capital structure (i.e., interest expense).

But it’s not quite the same because Adjusted NOI excludes income taxes, the Change in Working Capital, and several other items that go into Unlevered FCF .

Interest Expense on Debt

Nearly all property acquisitions and developments are funded partially by Debt , so you will almost always see the Interest Expense on that Debt on the pro-forma.

You could use the IPMT function in Excel to calculate the Interest Expense, or you could calculate it manually based on Interest Rate * Debt Balance.

Debt Principal Repayment

This one is the other component of Debt Service: repaying the principal over time.

You could use the PPMT function, the counterpart of IPMT, to calculate this one, or you could do it manually based on percentages; it just depends on the terms of the Debt and your model.

This is the final line on the typical real estate pro-forma, and it represents the amount available for distribution to the equity investors (the “owners”) in the property.

Companies often avoid dividends and accumulate large cash balances, but properties tend to distribute their annual cash flow unless they need it for something major.

Additional Items and the Real Estate Pro-Forma for Multifamily and Hotel Properties

In this article, we’ve focused on a real estate pro-forma for a mixed  office/retail  property.

This same pro-forma also applies to industrial properties because lease terms, revenue, and expenses are similar.

However, it would be slightly different for a multifamily (apartment) property, and it would be significantly different for a hotel.

Multifamily leases are shorter, simpler, and more similar to each other, and Tenant Improvements and Leasing Commissions tend to be far less significant as a result.

Tenants are often responsible for Utilities, but not much else, so Expense Reimbursements might be labeled just “Utility Reimbursements.”

And since individuals rather than companies are the tenants, there is a substantial risk of non-payment. That explains why you’ll see “Bad Debt” as a deduction in the Revenue section.

Hotels are so different that we’d probably need a separate article to explain the hotel pro-forma fully.

But in short, it’s more like the Income Statement of a real company, with revenue in categories such as Rooms and Food & Beverage, and Fixed vs. Variable Expenses.

Hotels require far more staff to operate since they’re more like “real companies,” so expense categories like Sales & Marketing and General & Administrative are much bigger.

A few other, more advanced items on the real estate pro-forma include Loss to Lease and Percentage Rent .

Loss to Lease represents the difference between in-place rents and market rents for tenants who are on below-market leases.

For example, if the market rent is $50 per square foot per year, but a tenant occupying 5,000 square feet is paying $45 per square foot per year, the Loss to Lease would be ($50 – $45) * 5,000, or $25,000 (and shown with a negative sign on the pro-forma).

You can determine what the proper rates might be by conducting comparative market analysis .

Percentage Rent is for retail tenants who pay a percentage of their monthly gross sales to the property owners, in addition to the traditional fixed rent.

Retailers might agree to this term in exchange for lower base rent.

With Debt Service, there is non-cash interest for properties, just as there is for companies (it’s also called “Accrued” or “Paid-in-Kind” or “PIK” interest).

And in some cases, the full loan proceeds will not be distributed upfront, but rather “held back” and distributed when certain milestones are met.

That creates differences in the Interest and Principal Repayment calculations and the returns for lenders.

What’s NOT on the Real Estate Pro-Forma: Taxes and Depreciation

Before wrapping up, I want to address two topics that generate a lot of questions:

“1) Why does your real estate pro-forma not include income taxes?

2) And what about Depreciation? Isn’t it huge in real estate?”

You typically exclude income taxes because, as mentioned above, properties are often owned by pass-through entities.

If you form a partnership to acquire apartment buildings, each partner will pay taxes individually, but the partnership as a whole will not pay corporate-level taxes.

Each partner’s taxes and rates will vary greatly based on their circumstances, so there’s no point in including these on the pro-forma.

Depreciation does not appear on the pro-forma because it is a non-cash expense that exists to “smooth out” CapEx and, partially, for tax purposes.

But since the pro-forma excludes taxes, there’s no point in including an item like Depreciation that is relevant mostly for tax purposes.

If we were modeling a taxable entity, such as a C corporation that owned properties, then we might worry about income taxes and Depreciation in the pro-forma.

The Real Estate Pro-Forma: What Next?

Like any financial model, the pro-forma is simply a tool .

If you use it correctly and come up with reasonable assumptions, it can tell you if a deal is potentially viable or completely implausible.

But it cannot tell you whether or not you’ll earn an out-sized return on a property acquisition or development.

“Real life” comes into play in a major way there; a deal might look great on paper, but if the property manager is incompetent and toxic rats invade the property, all bets are off.

However, a properly constructed pro-forma can help you evaluate the risks of a deal and see what might happen if something goes wrong, and how you might reduce those risks.

Coming up next, we’ll go through a series of real estate case studies that demonstrate how to use the pro-forma to make investment decisions, as you might in  real estate private equity .

Yes, we’ve released real estate case studies in the past, but the ones coming up are newer, better, and more representative of real-life exercises.

And if you want more before then, there’s the full Real Estate Financial Modeling course .

Further Reading

You might be interested in The Complete Guide To Commercial Real Estate Market Analysis .

About the Author

Brian DeChesare is the Founder of Mergers & Inquisitions and Breaking Into Wall Street . In his spare time, he enjoys lifting weights, running, traveling, obsessively watching TV shows, and defeating Sauron.

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42 thoughts on “ The Real Estate Pro-Forma: Full Guide, Excel Template, Explanations, and More ”

Thanks for this, Brian. Do you not assume depreciation or amortization for the relevant period?

Most properties are owned by pass-through entities such as partnerships, LLCs, S-Corporations, or REITs that pay no corporate-level taxes (or minimal taxes in some countries), and D&A only affects the taxes since it is a non-cash expense.

Individual shareholders will therefore see the impact of the D&A on their K-1 forms (in the U.S., for example), but as a convention in most RE models, you don’t show the D&A unless the property is owned by something like a real estate operating company that is not exempt from corporate taxes.

It’s the same reason why you do not deduct taxes when calculating the exit equity proceeds in an LBO: Yes, there are capital gains taxes, but since the PE firm is a partnership, the taxes are paid at the individual shareholder level for both the GPs and LPs.

Thank you for the great proforms and narrative!. It appears to be very comprehensive and extremely well laid out. A great resource. Thank you so much!

What are the necessary pro-forma elements in regard to developing a residential (most single-family homes with some multifamily structures and some commercial/retail spaces. Land as already been acquired, but this is needed for our business plan to lenders to fund the development. First-time developer here, is there a model available for this?

So on these technical posts / Excel-based articles, we can only answer questions related to the actual content here. At a high-level, though, single-family home development tends to be structured differently, often more based on development and pre-sale “phases,” with less detail on each individual unit in the lot. So you will tend to see more complicated funding structures and timelines, with equity and debt draws occurring at different times.

We do have 2 pre-sold condo development models in the Real Estate Modeling course (one easier/shorter and one more complex with a more detailed waterfall).

I’m looking for something like this only for a residential brokerage company.

We do not have anything for residential brokerage companies. We post free samples of the material we have and nothing more.

Residential Brokerages usually value properties using comparable sales, no need for any of this unless it’s an independent residential/multifamily investor.

Hi, is there any way to calculate acquisition price or purchase price when it’s not given in acquisition model, how is it calculated from IRR or cap rate? Please explain

Purchase prices are typically based on forward NOI for the property and prevailing Cap Rates in the area for similar properties (NOI / Cap Rate). So you need that data to estimate the price.

Dear Brian, Can you help me with one of my assignment.? where can I send you my excel sheet?

Sorry, but we don’t provide homework help on this site.

Thank you for the great proforms and narrative!. It appears to be very comprehensive and extremely well laid out. A great resource. Thank you so much! I am looking for a template to simplify cash flow projections for several buildings and then consolidating them. At the moment I have a massive workbook that has grown to become a bit of a beast. Do you have any suggestions?

I can’t really say or recommend something specific here without seeing your files. But you normally don’t want to track individual tenants across multiple buildings separately. You can probably consolidate it by simplifying some of the assumptions, such as by saying that a certain % of overall leased space expires each year and tenant turnover will result in XX% less in rental income in those periods.

I’ve applied for a Real Estate PE Internship at KKR and I was finally contacted by the asset management team of have some interviews. I think both teams are working closely together but I was wondering what is the value of an Asset Management internship within KKR knowing that I want to do PE and already have 2 PE experience. Does the KKR brandname worth it ?

Thank you for the answer…

I’d say it’s still worthwhile, but mostly because of the KKR brand name. The work experience itself probably won’t add much.

May I know what is Exit Cap Rate? What is the formula you used to calculate exit cap rate?

It’s based on what similar properties in the area have sold for. Cap Rate = Forward NOI / Property Selling Price. Higher Cap Rates mean lower valuations and vice versa.

Thank you so much!

Hi Brian, nice article and great template. I was wondering if you have any experience with running House Price Index scenarios to make best and worst case assumptions. If you have any tips, I’d love to hear.

Sorry, we do not.

Hi Brian, may I know why ‘item ‘capex, TIs, LCs” is calculated twice, one in expenses, antoher in adjustment after NOI. Thank you so much.

They are different. The one before NOI is for the “reserves,” AKA the annual allocation to a balance that will be drawn when CapEx, TIs, and LCs are actually incurred and require cash payments. The one below NOI is for the payment of those items, paid for by as much of the reserves as possible.

This is great. I am looking for something similar investment in aircraft class and the returns perspective to different lenders.

Can you share, please? Regards

Sorry, we don’t cover that industry.

Hi Brian, Thanks for the excellent article and template. Do you feel it’s worthwhile doing an analysis like this with all 50 tenants individually included within an office building to assess the pro forma with more granular detail?

It’s rarely worth doing granular analysis for 50 tenants because rental income will not be “lumpy” at that level. It would be worthwhile only if, for example, 25 tenants had lease expiration dates in Year 1, there was nothing in Years 2-3, and then the next 25 tenants all had expiration dates in Year 4.

Excellent series of in depth inputs on real estate investments.

Very general question, Which are some of the reasons or parameters property developers compare among available plots/options and decide on one specific plot or property to go ahead and invest in it.

pro-forma must be one of the useful tool but are there any other parameters/data which builds confidence or supports decision taking.

Thanks in advance.

Take care, Stay safe

Location, location, location. The value of land depends almost entirely on what else is around it and whether the area is growing quickly or losing population and commercial activity.

thank you for the insight into your program. I like it.

I am going to enhance my use of Excel, and then I will be back.

thank you again!

Thank you for this, Is there any commercial software or ERP that offers this Real Estate Pro-Form?

There are various software solutions for real estate, the most famous one being ARGUS. But the problem is that all these solutions are less ubiquitous than Excel; everyone knows and uses spreadsheets, but only small percentages of people use one specific software product. So, we tend to stick with Excel for most pro-formas, except for very complex ones with multiple lease breaks and potential renewals for each tenant in the holding period, where ARGUS does a better job.

Thank you for this, I found it extremely helpful in a deal I’m analyzing. I do have a question regarding the spreadsheet’s functionality. Suppose I want to add tenants and make them all NNN. Do I just delete Tenant 1 and 2 and then copy and paste Tenant 3 a few more times into the spreadsheet?

Hi Steven. Were you able to accomplish this? I have tried the copy and paste and the references get all messed up.

This is great – thank you very much for the hard work and effort you put into this article and the accompanying spreadsheet

Thanks for reading!

Great Intro. Thank you Brian.

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